Answered step by step
Verified Expert Solution
Question
1 Approved Answer
10. Compute average returns and standard deviations corresponding to country bond and stock data displayed below. Compare and discuss the difference between stocks and bonds
10. Compute average returns and standard deviations corresponding to country bond and stock data displayed below. Compare and discuss the difference between stocks and bonds for the country data.
\begin{tabular}{|r|r|r|r|r|r|r|r|} \hline & & \multicolumn{3}{|c|}{ UK } & \multicolumn{3}{|c|}{ US } \\ \hline 63 & Date & Stock & MarketCapitaliza & BondReturn & StockReturn & MarketCapitalization & BondReturn \\ \hline 65 & 1981 & 12.83 & 184,752 & 2.08 & -3.61 & 893,430 & 1.90 \\ \hline 66 & 1982 & 28.52 & 191,266 & 51.53 & 22.44 & 1,049,433 & 39.16 \\ \hline 67 & 1983 & 25.97 & 210,607 & 20.31 & 22.55 & 1,222,131 & -0.58 \\ \hline 68 & 1984 & 30.18 & 211,340 & 9.96 & 6.24 & 1,228,621 & 14.22 \\ \hline 69 & 1985 & 22.84 & 302,349 & 11.14 & 32.23 & 1,554,711 & 29.74 \\ \hline 70 & 1986 & 26.29 & 403,071 & 9.16 & 17.68 & 1,743,364 & 25.21 \\ \hline 71 & 1987 & 7.90 & 562,787 & 21.88 & 4.74 & 1,800,268 & -3.45 \\ \hline 72 & 1988 & 10.08 & 567,570 & 9.54 & 17.84 & 1,956,196 & 9.94 \\ \hline 73 & 1989 & 37.39 & 665,860 & 5.96 & 32.40 & 2,355,377 & 17.98 \\ \hline 74 & 1990 & -8.26 & 705,011 & 8.07 & -3.49 & 2,186,563 & 6.85 \\ \hline 75 & 1991 & 20.87 & 800,896 & 18.82 & 29.16 & 2,900,656 & 18.17 \\ \hline 76 & 1992 & 19.55 & 757,364 & 14.30 & 5.90 & 3,074,287 & 8.07 \\ \hline 77 & 1993 & 24.59 & 917,948 & 40.52 & 10.29 & 3,332,434 & 16.94 \\ \hline 78 & 1994 & -6.95 & 903,719 & -9.98 & 1.56 & 3,296,047 & -6.19 \\ \hline 79 & 1995 & 26.36 & 1,097,924 & 18.07 & 36.99 & 4,935,800 & 31.54 \\ \hline 80 & 1996 & 15.79 & 1,392,185 & 9.42 & 21.29 & 5,926,178 & -1.44 \\ \hline 81 & 1997 & 24.75 & \#REF! & 22.98 & 34.418,003,025 & 14.51 \\ \hline \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started