Annual Returns S&P500 T-Bills Mutual Fund 1928 0.438112 0.030800 -0.168799 1929 -0.082979 0.031600 0.175656 1930 -0.251236 0.045500 -0.007909 1931 -0.438375 0.023100 -0.363847 1932 -0.086424 0.010700 -0.131197 1933 0.499822 0.009600 0.132899 1934 -0.011886 0.003225 -0.087748 1935 0.467404 0.001750 0.531091 1936 0.319434 0.001700 0.190696 1937 -0.353367 0.003025 -0.495859 1938 0.292827 0.000775 0.047588 1939 -0.010976 0.000375 -0.277125 1940 -0.106729 0.000250 -0.374927 1941 -0.127715 0.000825 -0.127744 1942 0.191738 0.003375 0.502635 1943 0.250613 0.003800 0.143105 1944 0.190307 0.003800 0.129984 1945 0.358211 0.003800 0.014700 1946 -0.084291 0.003800 0.064683 1947 0.052000 0.005675 0.038263 1948 0.057046 0.010225 -0.175621 1949 0.183032 0.011025 -0.079179 1950 0.308055 0.011725 -0.026398 1951 0.236785 0.014775 0.208013 1952 0.181510 0.016725 0.178589 1953 -0.012082 0.018925 -0.029147 1954 0.525633 0.009625 0.010755 1955 0.325973 0.016600 -0.084037 1956 0.074395 0.025550 0.046653 1957 -0.104574 0.032300 0.094701 1958 0.437200 0.017775 0.268846 1959 0.120565 0.032550 -0.099234 1960 0.003365 0.030450 -0.164839 1961 0.266377 0.022675 0.126549 1962 -0.088115 0.027775 0.147349 1963 0.226119 0.031100 0.408829 1964 0.164155 0.035050 0.187969 1965 0.123992 0.039025 -0.165308 1966 -0.099710 0.048400 -0.363313 1967 0.238030 0.043325 0.201905 1968 0.108149 0.052600 -0.243972 1969 -0.082414 0.065625 0.214233 1970 0.035611 0.066850 0.313110 1971 0.142212 0.045400 -0.187298 1972 0.187554 0.039525 0.269064 1973 -0.143080 0.067250 0.105595 1974 -0.259018 0.077775 -0.176792 1975 0.369951 0.059900 0.239956 1976 0.238310 0.049700 0.259243 1977 -0.069797 0.051275 -0.333338 1978 0.065093 0.069325 0.128009 1979 0.185195 0.099375 0.191164 1980 0.317352 0.112200 0.024769 1981 -0.047024 0.143000 0.065494 1982 0.204191 0.110100 0.076095 1983 0.223372 0.084475 0.090201 1984 0.061461 0.096125 -0.025303 1985 0.312351 0.074875 -0.002791 1986 0.184946 0.060350 0.425502 1987 0.058127 0.057225 0.221466 1988 0.165372 0.064500 0.123380 1989 0.314752 0.081100 0.307738 1990 -0.030645 0.075500 -0.182360 1991 0.302348 0.056100 0.091870 1992 0.074937 0.034050 -0.193979 1993 0.099671 0.029825 0.178861 1994 0.013259 0.039850 0.034589 1995 0.371952 0.055150 0.264691 1996 0.226810 0.050225 0.314482 1997 0.331037 0.050525 0.122369 1998 0.283380 0.047275 0.014449 1999 0.208854 0.045100 -0.104250 2000 -0.090318 0.057625 -0.076258 2001 -0.118498 0.036725 -0.150691 2002 -0.219660 0.016575 -0.116926 2003 0.283558 0.010300 -0.219123 2004 0.107428 0.012275 0.058699 2005 0.048345 0.030100 0.036894 2006 0.156126 0.046775 0.236035 2007 0.054847 0.046425 -0.090487 2008 -0.365523 0.015850 -0.111028 2009 0.259352 0.001350 0.019846 2010 0.148211 0.001300 0.266869 2011 0.020984 0.000300 -0.415753 2012 0.158906 0.000500 0.369202 2013 0.321451 0.000660 0.291154 2014 0.134774 0.000530 0.149038

What is the average return on the S&P500 between 1928 and 2014? Use the population average. Note that the data is in decimal form, but you should express your answer in percentage form rounded to one decimal.

b. What is the average return on T-Bills between 1928 and 2014? Use the population average. Note that the data is in decimal form, but you should express your answer in percentage form rounded to one decimal.

c. What is the average return on the mutual fund between 1928 and 2014? Use the population average. Note that the data is in decimal form, but you should express your answer in percentage form rounded to one decimal.

d. What is the standard deviation of the S&P 500 returns between 1928 and 2014? Use the population standard deviation. Note that the data is in decimal form, but you should express your answer in percentage form rounded to one decimal.

e. What is the standard deviation of the mutual fund returns between 1928 and 2014? Use the population standard deviation. Note that the data is in decimal form, but you should express your answer in percentage form rounded to one decimal.

f. What is the beta of the mutual fund returns between 1928 and 2014? Estimate beta using the characteristic line and ordinary least squares. Round your answer to two decimal places.

g. Using the ex-post security market line, what was the expected return for the mutual fund given the estimated beta and the average returns on the T-Bill and the S&P500?

h. Where does the mutual fund plots with respect to the security market line?