Compute the average return for each of the assets from 1929 to 1940 (the Great Depression)....
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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? Note: Notice that the answers for average return, variance, and standard deviation must be entered in decimal format. 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.) (Click on the following icon in order to copy its contents into a spreadsheet.) 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). World Portfolio Treasury Bills Corp Bonds 0.04321 0.06343 -0.02380 0.12198 0.05255 0.09728 0.06860 0.06220 0.02546 0.04357 0.04247 0.04512 S&P 500 -0.08907 -0.25257 -0.43858 -0.08861 0.52895 -0.02341 0.47208 0.32801 -0.35258 0.33199 -0.00910 - 0.10082 Small Stocks - 0.50467 -0.45583 - 0.50216 0.08696 1.87200 0.25209 0.64739 0.87508 - 0.53403 0.26275 0.00184 - 0.12340 -0.07692 -0.22574 -0.39305 0.03030 0.66449 0.02552 0.22782 0.19283 - 0.16950 0.05614 -0.01441 0.03528 0.04737 0.02347 0.01023 0.00806 0.00293 0.00155 0.00165 0.00175 0.00319 0.00041 0.00008 -0.00058 CPI 0.00746 -0.06420 -0.09235 - 0.10465 0.00974 0.01286 0.03175 0.01231 0.03040 -0.02950 0.00000 0.00912 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? Note: Notice that the answers for average return, variance, and standard deviation must be entered in decimal format. 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.) (Click on the following icon in order to copy its contents into a spreadsheet.) 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). World Portfolio Treasury Bills Corp Bonds 0.04321 0.06343 -0.02380 0.12198 0.05255 0.09728 0.06860 0.06220 0.02546 0.04357 0.04247 0.04512 S&P 500 -0.08907 -0.25257 -0.43858 -0.08861 0.52895 -0.02341 0.47208 0.32801 -0.35258 0.33199 -0.00910 - 0.10082 Small Stocks - 0.50467 -0.45583 - 0.50216 0.08696 1.87200 0.25209 0.64739 0.87508 - 0.53403 0.26275 0.00184 - 0.12340 -0.07692 -0.22574 -0.39305 0.03030 0.66449 0.02552 0.22782 0.19283 - 0.16950 0.05614 -0.01441 0.03528 0.04737 0.02347 0.01023 0.00806 0.00293 0.00155 0.00165 0.00175 0.00319 0.00041 0.00008 -0.00058 CPI 0.00746 -0.06420 -0.09235 - 0.10465 0.00974 0.01286 0.03175 0.01231 0.03040 -0.02950 0.00000 0.00912
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