Download the spreadsheet from the textbook's Web site containing the data for Figure. a. Compute the average
Question:
Download the spreadsheet from the textbook's Web site containing the data for Figure.
a. Compute the average return for each of the assets from 1929 to 1940 (the Great Depression).
b. Compute the variance and standard deviation for each of the assets from 1929 to 1940.
c. Which asset was riskiest during the Great Depression? How does that fit with yourintuition?
Transcribed Image Text:
$100,000,000 -Small stocks S&P 500 -World portfolio $15,627,547 $10,000,000 E $1,000,000 $100,000 $10,000 Corporate bonds Treasury Bills 8 CP S238,265 $112,022 $16,523 $2635 S1206 $1000 $100 $10 1925 1935 1945 1955 1965 1975 1985 1995 2005 2010 ear
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Asset Class SP 500 Small Stocks Corp Bonds World Portfolio Treasury Bills CPI a Average return 2553 16550 5351 2940 0859 1491 b Variance of returns 01018 06115 00013 00697 00002 00022 Standard deviati...View the full answer
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