Which has a higher return on investment? S&P 500, High-Grade Corporate Bonds, or the U.S. Treasury Bond. Download the Investment Returns dataset. The source is from A swath Damodaran, NYU Finance Professor, at http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html.

1. Calculate the average returns for the S&P 500 stock index, Baa (high-grade corporate bonds), and U.S. Treasury bonds from 1928 to 2021. Which has the highest return?

2. Calculate the standard deviation of returns to the S&P 500 stock index, Baa (high-grade) corporate bonds, and U.S. Treasury bonds from 1928 to 2021. Which has the highest standard deviation of returns?

3. Generally we expect that the higher the risk, the greater the expected return. Which has the highest risk (measured here as standard deviation of returns), and which has the greatest return?