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).

YearS&P 500Small StocksCorp BondsWorld PortfolioTreasury BillsCPI

1929-0.08907-0.504670.04321-0.076920.047370.00746

1930-0.25257-0.455830.06343-0.225740.02347-0.06420

1931-0.43858-0.50216-0.02380-0.393050.01023-0.09235

1932-0.088610.086960.121980.030300.00806-0.10465

19330.528951.872000.052550.664490.002930.00974

1934-0.023410.252090.097280.025520.001550.01286

19350.472080.647390.068600.227820.001650.03175

19360.328010.875080.062200.192830.001750.01231

1937-0.35258-0.534030.02546-0.169500.003190.03040

19380.331990.262750.043570.056140.00041-0.02950

1939-0.009100.001840.04247-0.014410.000080.00000

1940-0.10082-0.123400.045120.03528-0.000580.00912

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

The average return for theS&P 500 was (Round to five decimalplaces.)

The average return for the small stocks was (Round to five decimalplaces.)

The average return for the corporate bonds was (Round to five decimalplaces.)

The average return for the world portfolio was (Round to five decimalplaces.)

The average return for the Treasury bills was. (Round to five decimalplaces.)

The average for the CPI was (Round to five decimalplaces.)

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

The standard deviation for theS&P 500 was . (Round to four decimalplaces.)

The standard deviation for the small stocks was (Round to four decimalplaces.)

The standard deviation for the corporate bonds was (Round to four decimalplaces.)

The standard deviation for the world portfolio was (Round to four decimalplaces.)

The standard deviation for the Treasury bills was(Round to four decimalplaces.)

The standard deviation for the CPI was (Round to four decimalplaces.)

c. Which asset was riskiest during the GreatDepression? How does that fit with yourintuition?(Select the best choicebelow.)

The riskiest assets were the Treasury bills. Intuition tells us that government securities should be the riskiest.

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

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

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

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