Question
Download the data from the following data table a. Compute the average return for each of the assets from 1929 to 1940 (the Great Depression).
Download the data from the following data table
a. Compute the average return for each of the assets from 1929 to 1940 (the Great Depression).
b. Compute the variance and standard deviation for each of the assets from 1929 to 1940.
c. Which asset was riskiest during the Great Depression? How does that fit with your intuition?
Year S&P 500 Small Stocks Corp Bonds World Portfolio Treasury Bills CPI 1929 -0.08906 -0.43081 0.04320 -0.07692 0.04471 0.00585 1930 -0.25256 -0.44698 0.06343 -0.22574 0.02266 -0.06395 1931 -0.43861 -0.54676 -0.02380 -0.39305 0.01153 -0.09317 1932 -0.08854 -0.00471 0.12199 0.03030 0.00882 -0.10274 1933 0.52880 2.16138 0.05255 0.66449 0.00516 0.00763 1934 -0.02341 0.57195 0.09728 0.02552 0.00265 0.01515 1935 0.47221 0.69112 0.06860 0.22782 0.00171 0.02985 1936 0.32796 0.70023 0.06219 0.19283 0.00173 0.01449 1937 -0.35258 -0.56131 0.02546 -0.16950 0.00267 0.02857 1938 0.33204 0.08928 0.04357 0.05614 0.00060 -0.02778 1939 -0.00914 0.04327 0.04247 -0.01441 0.00042 0.00000 1940 -0.10078 -0.28063 0.04512 0.03528 0.00037 0.00714
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started