Question: Given the datahere, Yearly returns from 1929-1940 for the S&P 500, small stocks, corporate bonds, world portfolio, Treasury bills, and inflation (as measured by the

Given the datahere,

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

1930 -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

.

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

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

c. Which asset was riskiest during the GreatDepression? How does that fit with yourintuition?

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

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