Question
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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