Question
Download the data from the following data table Yearly returns from 1929-1940 for the S&P 500, small stocks, corporate bonds, world portfolio, Treasury bills, and
Download the data from the following data table
Yearly returns from 1929-1940 for the S&P 500, small stocks, corporate bonds, world portfolio,
Treasury bills, and inflation (as measured by the CPI).
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
.
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?
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
The Palgrave International Handbook Of Basic Income
Authors: Malcolm Torry
1st Edition
3030236137, 978-3030236137
