Q5.3. From December 31, 2000 (when it closed at 1,320.28) to December 31, 2008 (when it closed at 903.25), the S&P 500 returned the following annual rates of returns with dividends:

What was the rate of return over the first 4 years, and what was it over the second 4 years? What was the rate of return over the whole 8 years? Was the realized rate of return time-varying?

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2001 2006 2007 2002 2003 2004 2005 2008 -11.81% -21.99% 28.21% 10.56% 4.61% 15.40% 5.28% -36.60%