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For the S&P 500 index and broad market calculate the average return and standard deviation of return. Annual returns for the years 1927-1943 are presented
For the S&P 500 index and broad market calculate the average return and standard deviation of return. Annual returns for the years 1927-1943 are presented on the left. | ||
S&P 500 Index | Broad Market Index | |
Arithmetic Average | ||
Geometric Average | ||
Standard Deviation | ||
How do these metrics compare between S&P 500 Index and the Broad Market Index? What do they say about the risk and return of the two indices? | ||
Year | S&P 500 Index | Broad Market Index |
1927 | 36% | 34% |
1928 | 44% | 38% |
1929 | -8% | -13% |
1930 | -25% | -28% |
1931 | -44% | -44% |
1932 | -9% | -8% |
1933 | 50% | 56% |
1934 | -1% | 5% |
1935 | 47% | 45% |
1936 | 32% | 33% |
1937 | -35% | -35% |
1938 | 29% | 28% |
1939 | -1% | 3% |
1940 | -11% | -7% |
1941 | -13% | -10% |
1942 | 19% | 16% |
1943 | 25% | 29% |
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