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Calculating average return, variance, and standard deviation with historical data. Year 2014 2015 2016 | 2017 Large Company Stocks 0.2646 0.1506 0.0211 0.1600 Long-Term Government

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Calculating average return, variance, and standard deviation with historical data. Year 2014 2015 2016 | 2017 Large Company Stocks 0.2646 0.1506 0.0211 0.1600 Long-Term Government Bonds -0.2561 0.0773 0.3575 0.0180 Average Returns: Large-company stocks: Long-term government bonds: Calculate variances: VAR(R) = 0 = IR. -} N-1 Variance of large-company stocks: Variance of long-term government bonds: Calculate standard deviation: SD(R)== /VAR(R) Standard deviation of large-company stocks: Standard deviation of long-term government bonds

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