Question: Download the spreadsheet from MyFinanceLab containing the realized return of the S&P 500 from 19292008. Starting in 1929, divide the sample into four periods of
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 amount an investor would have earned given a $1000 initial investment. Also express your answer as an annualized return. If risk were eliminated by holding stocks for 20 years, what would you expect to find? What can you conclude about longrun diversification?
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