Question: Given the data here, LOADING.... a. Compute the average return for each of the assets from 1929 to 1940 (the Great Depression). b. Compute the

Given the data here, LOADING....

Given the data here, LOADING.... a. Compute the average return for each

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?

Note: Notice that the answers for average return, variance and standard deviation must be entered in decimal format.

i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) 1930 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). Year S&P 500 Small Stocks Corp Bonds World Portfolio Treasury Bills CPI 1929 -0.08907 -0.50467 0.04321 -0.07692 0.04737 0.00746 -0.25257 -0.45583 0.06343 -0.22574 0.02347 -0.06420 1931 -0.43858 -0.50216 -0.02380 -0.39305 0.01023 -0.09235 1932 -0.08861 0.08696 0.12198 0.03030 0.00806 -0.10465 1933 0.52895 1.87200 0.05255 0.66449 0.00293 0.00974 1934 -0.02341 0.25209 0.09728 0.02552 0.00155 0.01286 1935 0.47208 0.64739 0.06860 0.22782 0.00165 0.03175 1936 0.32801 0.87508 0.06220 0.19283 0.00175 0.01231 1937 -0.35258 -0.53403 0.02546 -0.16950 0.00319 0.03040 1938 0.33199 0.26275 0.04357 0.05614 0.00041 -0.02950 1939 -0.00910 0.00184 0.04247 -0.01441 0.00008 0.00000 1940 - 0.10082 -0.12340 0.04512 0.03528 -0.00058 0.00912 i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) 1930 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). Year S&P 500 Small Stocks Corp Bonds World Portfolio Treasury Bills CPI 1929 -0.08907 -0.50467 0.04321 -0.07692 0.04737 0.00746 -0.25257 -0.45583 0.06343 -0.22574 0.02347 -0.06420 1931 -0.43858 -0.50216 -0.02380 -0.39305 0.01023 -0.09235 1932 -0.08861 0.08696 0.12198 0.03030 0.00806 -0.10465 1933 0.52895 1.87200 0.05255 0.66449 0.00293 0.00974 1934 -0.02341 0.25209 0.09728 0.02552 0.00155 0.01286 1935 0.47208 0.64739 0.06860 0.22782 0.00165 0.03175 1936 0.32801 0.87508 0.06220 0.19283 0.00175 0.01231 1937 -0.35258 -0.53403 0.02546 -0.16950 0.00319 0.03040 1938 0.33199 0.26275 0.04357 0.05614 0.00041 -0.02950 1939 -0.00910 0.00184 0.04247 -0.01441 0.00008 0.00000 1940 - 0.10082 -0.12340 0.04512 0.03528 -0.00058 0.00912

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