# Question: Using the data from Problem 17 repeat your analysis over

Using the data from Problem 17, repeat your analysis over the 1990s.

a. Which asset was riskiest?

b. Compare the standard deviations of the assets in the 1990s to their standard deviations in the Great Depression. Which had the greatest difference between the two periods?

c. If you only had information about the 1990s, what would you conclude about the relative risk of investing in small stocks?

a. Which asset was riskiest?

b. Compare the standard deviations of the assets in the 1990s to their standard deviations in the Great Depression. Which had the greatest difference between the two periods?

c. If you only had information about the 1990s, what would you conclude about the relative risk of investing in small stocks?

**View Solution:**## Answer to relevant Questions

What if the last two decades had been “normal”? Download the spreadsheet from MyFinanceLab containing the data for Figure 10.1.a. Calculate the arithmetic average return on the S&P 500 from 1926 to 1989.b. Assuming that ...Download the spreadsheet from MyFinanceLab containing the realized return of the S&P 500 from 1929–2008. Starting in 1929, divide the sample into four periods of 20 years each. For each 20-year period, calculate the final ...Suppose Wesley Publishing’s stock has a volatility of 60%, while Addison Printing’s stock has a volatility of 30%. If the correlation between these stocks is 25%, what is the volatility of the following portfolios of ...Calculate (a) the expected return and (b) the volatility (standard deviation) of a portfolio that is equally invested in Johnson & Johnson’s and Walgreen’sstock.The Optima Mutual Fund has an expected return of 20%, and a volatility of 20%. Optima claims that no other portfolio offers a higher Sharpe ratio. Suppose this claim is true, and the risk-free interest rate is 5%.a. What is ...Post your question