Question: 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

a. Compute the average return for each of the assets from 1929 to 1940 (the Great Depression). b. Compute the variance and standard

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 your intuition? Year 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 Yearly returns from 1929-1940 for the S&P 500, small stocks, corporate bonds, world portfolio, Treasury bills, and inflation (as measured by the CPI). S&P 500 Small Stocks Corp Bonds World Portfolio Treasury Bills -0.08906 -0.43081 0.04320 -0.07692 0.04471 -0.25256 -0.44698 0.06343 -0.22574 0.02266 -0.43861 -0.54676 -0.02380 -0.39305 0.01153 -0.08854 -0.00471 0.12199 0.03030 0.00882 0.52880 2.16138 0.05255 0.66449 0.00516 -0.02341 0.57195 0.09728 0.02552 0.00265 0.47221 0.69112 0.06860 0.22782 0.00171 0.32796 0.70023 0.06219 0.19283 0.00173 -0.35258 -0.56131 0.02546 -0.16950 0.00267 0.33204 0.08928 0.04357 0.05614 0.00060 -0.00914 0.04327 0.04247 -0.01441 0.00042 -0.10078 -0.28063 0.04512 0.03528 0.00037 CPI 0.00585 -0.06395 -0.09317 -0.10274 0.00763 0.01515 0.02985 0.01449 0.02857 -0.02778 0.00000 0.00714 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 your intuition? Year 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 Yearly returns from 1929-1940 for the S&P 500, small stocks, corporate bonds, world portfolio, Treasury bills, and inflation (as measured by the CPI). S&P 500 Small Stocks Corp Bonds World Portfolio Treasury Bills -0.08906 -0.43081 0.04320 -0.07692 0.04471 -0.25256 -0.44698 0.06343 -0.22574 0.02266 -0.43861 -0.54676 -0.02380 -0.39305 0.01153 -0.08854 -0.00471 0.12199 0.03030 0.00882 0.52880 2.16138 0.05255 0.66449 0.00516 -0.02341 0.57195 0.09728 0.02552 0.00265 0.47221 0.69112 0.06860 0.22782 0.00171 0.32796 0.70023 0.06219 0.19283 0.00173 -0.35258 -0.56131 0.02546 -0.16950 0.00267 0.33204 0.08928 0.04357 0.05614 0.00060 -0.00914 0.04327 0.04247 -0.01441 0.00042 -0.10078 -0.28063 0.04512 0.03528 0.00037 CPI 0.00585 -0.06395 -0.09317 -0.10274 0.00763 0.01515 0.02985 0.01449 0.02857 -0.02778 0.00000 0.00714

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