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Calculate the arithmetic average return, the geometric average return, and standard deviation of yearly returns for each of the assets over the entire period. Which

Calculate the arithmetic average return, the geometric average return, and standard deviation of yearly returns for each of the assets over the entire period. Which asset had the highest return? Highest risk?

Year-by-Year Total Returns

Year

Large Company Stocks

Small Company Stocks

Long-term Corporate Bonds

Long-term Government Bonds

Intermed-term Government Bonds

U.S. Treasury Bills

Inflation

Political Party

1926

11.62

0.28

7.37

7.77

5.38

3.27

-1.49

R

1927

37.49

22.10

7.44

8.93

4.52

3.12

-2.08

R

1928

43.61

39.69

2.84

0.10

0.92

3.56

-0.97

R

1929

-8.42

-51.36

3.27

3.42

6.01

4.75

0.20

R

1930

-24.90

-38.15

7.98

4.66

6.72

2.41

-6.03

R

1931

-43.34

-49.75

-1.85

-5.31

-2.32

1.07

-9.52

R

1932

-8.19

-5.39

10.82

16.84

8.81

0.96

-10.30

R

1933

53.99

142.87

10.38

-0.07

1.83

0.30

0.51

D

1934

-1.44

24.22

13.84

10.03

9.00

0.16

2.03

D

1935

47.67

40.19

9.61

4.98

7.01

0.17

2.99

D

1936

33.92

64.80

6.74

7.52

3.06

0.18

1.21

D

1937

-35.03

-58.01

2.75

0.23

1.56

0.31

3.10

D

1938

31.12

32.80

6.13

5.53

6.23

-0.02

-2.78

D

1939

-0.41

0.35

3.97

5.94

4.52

0.02

-0.48

D

1940

-9.78

-5.16

3.39

6.09

2.96

0.00

0.96

D

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