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

The average return for the S&P 500 was ___ (Round to five decimal places.)

The average return for the Small Stocks was ___ (Round to five decimal places.)

The average return for the Corp Bonds was ___ (Round to five decimal places.)

The average return for the World Portfolio was ___ (Round to five decimal places.)

The average return for the Treasury Bills was ___ (Round to five decimal places.)

The average for the CPI was ___ (Round to five decimal places.)

b. Compute the variance and standard deviation for each of the assets from 1929 to 1940.

The variance for the S&P 500 was ___ (Round to five decimal places.)

The variance for the Small Stocks was ___ (Round to five decimal places.)

The variance for the Corp Bonds was ___(Round to five decimal places.)

The variance for the World Portfolio was ___ (Round to five decimal places.)

The variance for the Treasury Bills was ___ (Round to five decimal places.)

The variance for the CPI was ___ (Round to five decimal places.)

The standard deviation for the S&P 500 was ___ (Round to five decimal places.)

The standard deviation for the Small Stocks was ___ (Round to five decimal places.)

The standard deviation for the Corp Bonds was ____ (Round to five decimal places.)

The standard deviation for the World Portfolio was ___ (Round to five decimal places.)

The standard deviation for the Treasury Bills was ____(Round to five decimal places.)

The standard deviation for the CPI was ___ (Round to five decimal places.)

c. Which asset was riskiest during the Great Depression? How does that fit with your intuition? (Select the best choice below.)

A.The riskiest assets were the small stocks. Intuition tells us that smaller companies should be riskiest.

B.The riskiest assets were the Treasury Bills. Intuition tells us that government securities would be the riskiest.

C.The riskiest assets were the stocks in the S&P 500. Intuition tells us that large companies should be the riskiest.

D.The riskiest assets were the corporate bonds. Intuition tells us that company debt should be riskiest.

Year 1929 1930 193 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 CP -0.43081 0.04320 0.07692 0.00585 0.08906 0.04471 0.06343 0.22574 0.02266 0.25256 0.44698 0.06395 -0.43861 0.02380 0.54676 0.39305 0.01153 0.09317 0.00471 0.12199 0.00882 0.10274 0.08854 0.03030 0.52880 0.00516 2.16138 0.05255 0.66449 0.00763 0.02341 0.09728 0.02552 0.57195 0.00265 0.01515 0.00171 0.47221 0.69112 0.06860 0.22782 0.02985 0.06219 0.32796 0.19283 0.70023 0.00173 0.01449 0.35258 0.02546 0.00267 0.56131 0.16950 0.02857 0.08928 0.05614 0.33204 0.04357 0.02778 0.00060 0.01441 0.04327 0.04247 0.00914 0.00042 0.00000 0.00714 0.04512 0.03528 0.10078 0.28063 0.00037 Year 1929 1930 193 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 CP -0.43081 0.04320 0.07692 0.00585 0.08906 0.04471 0.06343 0.22574 0.02266 0.25256 0.44698 0.06395 -0.43861 0.02380 0.54676 0.39305 0.01153 0.09317 0.00471 0.12199 0.00882 0.10274 0.08854 0.03030 0.52880 0.00516 2.16138 0.05255 0.66449 0.00763 0.02341 0.09728 0.02552 0.57195 0.00265 0.01515 0.00171 0.47221 0.69112 0.06860 0.22782 0.02985 0.06219 0.32796 0.19283 0.70023 0.00173 0.01449 0.35258 0.02546 0.00267 0.56131 0.16950 0.02857 0.08928 0.05614 0.33204 0.04357 0.02778 0.00060 0.01441 0.04327 0.04247 0.00914 0.00042 0.00000 0.00714 0.04512 0.03528 0.10078 0.28063 0.00037