Question: Variance and standard deviation. Calculate the variance and the standard deviation of U.S. Treasury bills, long-term government bonds, and small-company stocks for 1950 to 1959,
Variance and standard deviation.Calculate the variance and the standard deviation of U.S. Treasury bills, long-term government bonds, and small-company stocks for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989 from Table 8.1. Which had the highest variance? Which had the lowest variance? Click on the Spreadsheet Learning Aid to see Table
8.1long dashYear-by-Year
Returns, 1950-1999.
What is the variance of U.S. Treasury bills for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989?
The variance of U.S. Treasury bills for 1950 to 1959 is
0.00554______%.
(Round to five decimal places.)
The variance of U.S. Treasury bills for 1960 to 1969 is _____
%.
(Round to five decimal places.)
The variance of U.S. Treasury bills for 1970 to 1979 is
0.03809____%.
(Round to five decimal places.)
The variance of U.S. Treasury bills for 1980 to 1989 is
0.08285_____%.
(Round to five decimal places.)
What is the standard deviation of U.S. Treasury bills for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989?
The standard deviation of U.S. Treasury bills for 1950 to 1959 is
0.744____%.
(Round to three decimal places.)
The standard deviation of U.S. Treasury bills for 1960 to 1969 is
____%.
(Round to three decimal places.)
The standard deviation of U.S. Treasury bills for 1970 to 1979 is
1.952%.
(Round to three decimal places.)
The standard deviation of U.S. Treasury bills for 1980 to 1989 is
2.878%.
(Round to three decimal places.)
What is the variance of long-term government bonds for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989?
The variance of long-term government bonds for 1950 to 1959 is
0.21066 %.
(Round to five decimal places.)
The variance of long-term government bonds for 1960 to 1969 is
0.39149 %.
(Round to five decimal places.)
The variance of long-term government bonds for 1970 to 1979 is
0.40207 %.
(Round to five decimal places.)
The variance of long-term government bonds for 1980 to 1989 is
%.
(Round to five decimal places.)
What is the standard deviation of long-term government bonds for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989?
The standard deviation of long-term government bonds for 1950 to 1959 is
%.
(Round to three decimal places.)
The standard deviation of long-term government bonds for 1960 to 1969 is
6.257 %.
(Round to three decimal places.)
The standard deviation of long-term government bonds for 1970 to 1979 is
6.341 %.
(Round to three decimal places.)
The standard deviation of long-term government bonds for 1980 to 1989 is
11.175 %.
(Round to three decimal places.)
Calculate the variance of small-company stocks for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989?
The variance of small-company stocks for 1950 to 1959 is
8.67926 %.
(Round to five decimal places.)
The variance of small-company stocks for 1960 to 1969 is
15.38544 %.
(Round to five decimal places.)
The variance of small-company stocks for 1970 to 1979 is
13.15023 %.
(Round to five decimal places.)
The variance of small-company stocks for 1980 to 1989 is
3.40688 %.
(Round to five decimal places.)
Calculate the standard deviation of small-company stocks for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989?
The standard deviation of small-company stocks for 1950 to 1959 is
29.461 %.
(Round to three decimal places.)
The standard deviation of small-company stocks for 1960 to 1969 is
39.224 %.
(Round to three decimal places.)
The standard deviation of small-company stocks for 1970 to 1979 is
36.263 %.
(Round to three decimal places.)
The standard deviation of small-company stocks for 1980 to 1989 is
18.458 %.
(Round to three decimal places.)
Which investment had the highest variance?(Select the best response.)
*** HERE IS THE DATA NEEDED***
| Table 8.1 Year-by-Year Returns, 1950-1999 | |||||
| Year | Three-Month U.S.Treasury Bills | Long-Term Government Bonds | Large Company Stocks | Small Company Stocks | |
| 1950 | 1.20% | -0.96% | 32.68% | 48.45% | |
| 1951 | 1.49% | -1.95% | 23.47% | 9.41% | |
| 1952 | 1.66% | 1.93% | 18.91% | 6.36% | |
| 1953 | 1.82% | 3.83% | -1.74% | -5.66% | |
| 1954 | 0.86% | 4.88% | 52.55% | 65.13% | |
| 1955 | 1.57% | -1.34% | 31.44% | 21.84% | |
| 1956 | 2.46% | -5.12% | 6.45% | 3.82% | |
| 1957 | 3.14% | 9.46% | -11.14% | -15.03% | |
| 1958 | 1.54% | -3.71% | 43.78% | 70.63% | |
| 1959 | 2.95% | -3.55% | 12.95% | 17.82% | |
| 1960 | 2.66% | 13.78% | 0.19% | -5.16% | |
| 1961 | 2.13% | 0.19% | 27.63% | 30.48% | |
| 1962 | 2.72% | 6.81% | -8.79% | -16.41% | |
| 1963 | 3.12% | -0.49% | 22.63% | 12.20% | |
| 1964 | 3.54% | 4.51% | 16.67% | 18.75% | |
| 1965 | 3.94% | -0.27% | 12.50% | 37.67% | |
| 1966 | 4.77% | 3.70% | -10.25% | -8.08% | |
| 1967 | 4.24% | -7.41% | 24.11% | 103.39% | |
| 1968 | 5.24% | -1.20% | 11.00% | 50.61% | |
| 1969 | 6.59% | -6.52% | -8.33% | -32.27% | |
| 1970 | 6.50% | 12.69% | 4.10% | -16.54% | |
| 1971 | 4.34% | 17.47% | 14.17% | 18.44% | |
| 1972 | 3.81% | 5.55% | 19.14% | -0.62% | |
| 1973 | 6.91% | 1.40% | -14.75% | -40.54% | |
| 1974 | 7.93% | 5.53% | -26.40% | -29.74% | |
| 1975 | 5.80% | 8.50% | 37.26% | 69.54% | |
| 1976 | 5.06% | 11.07% | 23.98% | 54.81% | |
| 1977 | 5.10% | 0.90% | -7.26% | 22.02% | |
| 1978 | 7.15% | -4.16% | 6.50% | 22.29% | |
| 1979 | 10.45% | 9.02% | 18.77% | 43.99% | |
| 1980 | 11.57% | 13.17% | 32.48% | 35.34% | |
| 1981 | 14.95% | 3.61% | -4.98% | 7.79% | |
| 1982 | 10.71% | 6.52% | 22.09% | 27.44% | |
| 1983 | 8.85% | -0.53% | 22.37% | 34.49% | |
| 1984 | 10.02% | 15.29% | 6.46% | -14.02% | |
| 1985 | 7.83% | 32.68% | 32.00% | 28.21% | |
| 1986 | 6.18% | 23.96% | 18.40% | 3.40% | |
| 1987 | 5.50% | -2.65% | 5.34% | -13.95% | |
| 1988 | 6.44% | 8.40% | 16.86% | 21.72% | |
| 1989 | 8.32% | 19.49% | 31.34% | 8.37% | |
| 1990 | 7.86% | 7.13% | -3.20% | -27.08% | |
| 1991 | 5.65% | 18.39% | 30.66% | 50.24% | |
| 1992 | 3.54% | 7.79% | 7.71% | 27.84% | |
| 1993 | 2.97% | 15.48% | 9.87% | 20.30% | |
| 1994 | 3.91% | -7.18% | 1.29% | -3.34% | |
| 1995 | 5.58% | 31.67% | 37.71% | 33.21% | |
| 1996 | 5.50% | -0.81% | 23.07% | 16.50% | |
| 1997 | 5.32% | 15.08% | 33.17% | 22.36% | |
| 1998 | 5.11% | 13.52% | 28.58% | -2.55% | |
| 1999 | 4.80% | -8.74% | 21.04% | 21.26% | |
| 50-year average | 5.226% | 5.936% | 14.890% | 17.103% | |
| Standard Deviation | 2.980% | 9.493% | 16.695% | 29.043% | |
| Note: Sources for annual returns are the Center for Research on Security Prices, Standard &Poor's 500 index, Russell 2000 index, and Solomon-Smith Barney U.S. Treasury bill index. | |||||
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