6. (LO 9.4, 9.5) Which has the highest return on investment: the S&P 500, Baa (highgrade)

corporate bonds, or U.S. Treasury bonds? Download the Investment Returns data set from Connect or Additional Student Resources. (Source: http://pages.stern.nyu.

edu/~adamodar/New_Home_Page/datafile/histretSP.html.)

Required 1. Calculate the average returns for the S&P 500 stock index, Baa (high-grade) corporate bonds, and U.S. Treasury bonds from 1928 to 2021. Which has the highest return?

2. Calculate the standard deviation of returns to the S&P 500 stock index, Baa (highgrade)

corporate bonds, and U.S. Treasury bonds from 1928 to 2021. Which has the highest standard deviation of returns? (Hint: Use the STDEV.S Excel function for each index.)

3. Generally we expect that the higher the risk, the greater the expected return. Which investment has the highest risk (measured here as standard deviation of returns), and which has the greatest return?