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1. In 1998 Large Company Stocks returned 28.58%. What was the real return of that year? Info: Large company stocks: 28.58% Long term government bonds:

1. In 1998 Large Company Stocks returned 28.58%. What was the real return of that year?

Info:

Large company stocks: 28.58%

Long term government bonds: 14.45%

US treasury bills: 4.86%

Consumer price index: 1.61%

2. Why does the Variance calculation, leading to Standard Deviation, square all returns, positive or negative?

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