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a. Compute the average return for each of the assets from 1929 to 1940 (the Great Depression).b. Compute the variance and standard deviation for each

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a. Compute the average return for each of the assets from 1929 to 1940

(the Great Depression).b. Compute the variance and standard deviation for each of the assets from 1929 to 1940.

c. Which asset was riskiest during the Great Depression? How does that fit with your intuition?

Data Table click on the Icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Yearly returns from 1929-1940 for the S&P 500, small stocks, corporate bonds, world portfolio, Treasury bills, and inflation (as measured by the CPI). Year 1929 1930 1931 1932 S&P 500 -0.08906 -0.25256 -0.43861 -0.08854 0.52880 -0.02341 0.47221 0.32796 -0.35258 0.33204 -0.00914 -0.10078 1933 1934 1935 1936 Small Stocks -0.43081 -0.44698 -0.54676 -0.00471 2.16138 0.57195 0.69112 0.70023 -0.56131 0.08928 0.04327 -0.28063 Corp Bonds 0.04320 0.06343 -0.02380 0.12199 0.05255 0.09728 0.06860 0.06219 0.02546 0.04357 0.04247 0.04512 World Portfolio -0.07692 -0.22574 -0.39305 0.03030 0.66449 0.02552 0.22782 0.19283 -0.16950 0.05614 -0.01441 0.03528 Treasury Bills 0.04471 0.02266 0.01153 0.00882 0.00516 0.00265 0.00171 0.00173 0.00267 0.00060 0.00042 0.00037 CPI 0.00585 - 0.06395 -0.09317 -0.10274 0.00763 0.01515 0.02985 1937 1938 1939 0.01449 0.02857 -0.02778 0.00000 0.00714 1940 Print Done Done

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