Question
Calculate the standard deviation of U.S. Treasury bills, long-term government bonds, and large-company stocks for 1987 to 1996 from Table 8.1. Which had the highest
Calculate the standard deviation of U.S. Treasury bills, long-term government bonds, and large-company stocks for 1987 to 1996 from Table 8.1. Which had the highest variance? Which has the lowest variance? Click on the Spreadsheet Learning Aid to see Table 8.1Year-by-Year Returns, 1950-1999.
| Year | Three-Month U.S.Treasury Bills | Long-Term Government Bonds | Large Company Stocks | Small Company Stocks |
| 1950 | 1.20% | -0.96% | 32.68% | 48.45% |
| 1951 | 1.49% | -1.95% | 23.47% | 9.41% |
| 1952 | 1.66% | 1.93% | 18.91% | 6.36% |
| 1953 | 1.82% | 3.83% | -1.74% | -5.66% |
| 1954 | 0.86% | 4.88% | 52.55% | 65.13% |
| 1955 | 1.57% | -1.34% | 31.44% | 21.84% |
| 1956 | 2.46% | -5.12% | 6.45% | 3.82% |
| 1957 | 3.14% | 9.46% | -11.14% | -15.03% |
| 1958 | 1.54% | -3.71% | 43.78% | 70.63% |
| 1959 | 2.95% | -3.55% | 12.95% | 17.82% |
| 1960 | 2.66% | 13.78% | 0.19% | -5.16% |
| 1961 | 2.13% | 0.19% | 27.63% | 30.48% |
| 1962 | 2.72% | 6.81% | -8.79% | -16.41% |
| 1963 | 3.12% | -0.49% | 22.63% | 12.20% |
| 1964 | 3.54% | 4.51% | 16.67% | 18.75% |
| 1965 | 3.94% | -0.27% | 12.50% | 37.67% |
| 1966 | 4.77% | 3.70% | -10.25% | -8.08% |
| 1967 | 4.24% | -7.41% | 24.11% | 103.39% |
| 1968 | 5.24% | -1.20% | 11.00% | 50.61% |
| 1969 | 6.59% | -6.52% | -8.33% | -32.27% |
| 1970 | 6.50% | 12.69% | 4.10% | -16.54% |
| 1971 | 4.34% | 17.47% | 14.17% | 18.44% |
| 1972 | 3.81% | 5.55% | 19.14% | -0.62% |
| 1973 | 6.91% | 1.40% | -14.75% | -40.54% |
| 1974 | 7.93% | 5.53% | -26.40% | -29.74% |
| 1975 | 5.80% | 8.50% | 37.26% | 69.54% |
| 1976 | 5.06% | 11.07% | 23.98% | 54.81% |
| 1977 | 5.10% | 0.90% | -7.26% | 22.02% |
| 1978 | 7.15% | -4.16% | 6.50% | 22.29% |
| 1979 | 10.45% | 9.02% | 18.77% | 43.99% |
| 1980 | 11.57% | 13.17% | 32.48% | 35.34% |
| 1981 | 14.95% | 3.61% | -4.98% | 7.79% |
| 1982 | 10.71% | 6.52% | 22.09% | 27.44% |
| 1983 | 8.85% | -0.53% | 22.37% | 34.49% |
| 1984 | 10.02% | 15.29% | 6.46% | -14.02% |
| 1985 | 7.83% | 32.68% | 32.00% | 28.21% |
| 1986 | 6.18% | 23.96% | 18.40% | 3.40% |
| 1987 | 5.50% | -2.65% | 5.34% | -13.95% |
| 1988 | 6.44% | 8.40% | 16.86% | 21.72% |
| 1989 | 8.32% | 19.49% | 31.34% | 8.37% |
| 1990 | 7.86% | 7.13% | -3.20% | -27.08% |
| 1991 | 5.65% | 18.39% | 30.66% | 50.24% |
| 1992 | 3.54% | 7.79% | 7.71% | 27.84% |
| 1993 | 2.97% | 15.48% | 9.87% | 20.30% |
| 1994 | 3.91% | -7.18% | 1.29% | -3.34% |
| 1995 | 5.58% | 31.67% | 37.71% | 33.21% |
| 1996 | 5.50% | -0.81% | 23.07% | 16.50% |
| 1997 | 5.32% | 15.08% | 33.17% | 22.36% |
| 1998 | 5.11% | 13.52% | 28.58% | -2.55% |
| 1999 | 4.80% | -8.74% | 21.04% | 21.26% |
| 50-year average | 5.226% | 5.936% | 14.890% | 17.103% |
| Standard Deviation | 2.980% | 9.493% | 16.695% | 29.043% |
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The Meaningful Money Handbook
Authors: Pete Matthew
1st Edition
0857196510, 978-0857196514
