Given the spreadsheet, E, containing the realized return of the S&P 500 from 1926-2014. Starting in 1929, divide the next 80 years (1929-2008) of the sample into four periods of 20 years each. For each 20-year period, calculate the final amount an investor would have earned given a $2,500 initial investment. Also express your answer as an annualized return. If risk were eliminated by holding stocks for 20 years, what would you expect to find? What can you conclude about long-run diversification? The amount after the 1929-1948 period is and the return is %. (Round the amount to the nearest cent and the return to four decimal places.) The amount after the 1949-1968 period is $and the return is 1% (Round the amount to the nearest cent and the return to four decimal places.) The amount after the 1969-1988 period is sand the return is %. (Round the amount to the nearest cent and the return to four decimal places.) The amount after the 1989-2008 period is and the return is % (Round the amount to the nearest cent and the return to four decimal places) If risk were eliminated by holding stocks for 20 years, what would you expect to find? What can you conclude about long-run diversification? (Select from the drop-down menus.) If risk were eliminated by holding stocks for 20 years, you would expect to find returns for all four periods, which you S&P 500 Small Stocks Corp Bonds World Portfolio Treasury Bills CPI 1926 0.11138 -0.072 0.06285 0.228 0.03194 -0.01188 1927 0.37126 0.25754 0.0655 0.25326 0.03125 -0.02163 1928 0.43308 0.46872 0.03377 0.33463 0.03824 -0.01229 1929 -0.08907 -0.50467 0.04321 -0.07692 0.04737 0.00746 1930 -0.25257 -0.45583 0.06343 -0.22574 0.02347 -0.0642 1931 -0.43858 -0.50216 -0.0238 -0.39305 0.01023 -0.09235 1932 -0.08861 0.08696 0.12198 0.0303 0.00806 -0.10465 1933 0.52895 1.872 0.052551 0.66449 0.00293 0.00974 1934 -0.02341 0.25209 0.09728 0.02552 0.00155 0.01286 1935 0.47208 0.64739 0.0686 0.22782 0.00165 0.03175 1936 0.32801 0.87508 0.0622 0.19283 0.00175 0.01231 1937 -0.35258 -0.53403 0.02546 -0.1695 0.00319 0.0304 1938 0.33199 0.26275 0.04357 0.05614 0.00041 -0.0295 1939 -0.0091 0.00184 0.04247 -0.01441 0.00008 0 1940 -0.10082 -0.1234 0.04512 0.03528 -0.00058 0.00912 1941 -0.11767 -0.13728 0.01788 0.18744 0.00042 0.0994 1942 0.21076 0.52504 0.031191 0.01189 0.00262 0.09041 1943 0.25758 1 0.03365 0.19895 0.0034 0.02764 1944 0.19694 0.60408 0.03101 -0.1024 0.00321 0.02445 1945 0.36461 0.82665 0.03512 0.11032 0.00321 0.02148 1946 -0.0818 -0.12608 0.02558 -0.15124 0.00352 0.18224 1947 0.0524 -0.02658 0.0045 0.03196 0.00461 0.08893 1948 0.05099 -0.06609 0.03707 -0.0573 0.00979 0.02904 0.01106 -0.02116 0.01213 0.05946| 0.01483 0.06122 0.01642 0.00641 0.0178 0.00863 0.01555 0.02422 0.03129 1949 0.18065 1950 0.30579 1951 0.24553 1952 0.18501 1953 -0.01099 1954 0.52404|| 1955 0.31429 1956 0.06627 1957 -0.10853 1958 0.43344 1959 0.11904 1960 0.00483 1961 0.26811 1962 -0.08784 1963 0.22691 1964 0.16358 1965 0.12356 1966 -0.10105 1967 0.23942 1968 0.11002 1969 -0.08466 1970 0.03986 1971 0.14325 1972 0.18936 1973 -0.14791 0.21502 0.45908 0.09767 0.06472 -0.05985 0.65232 0.2211 0.03459 -0.15053 0.70923 0.1868 -0.05004 0.30836 -0.1295 0.18093 0.19405 0.36365 -0.07302 0.77916| 0.47611 -0.32219 -0.04503 0.16347 0.04222 -0.35936 0.04327 0.01891 -0.0021 0.03427 0.02061 0.04658 0.01075 -0.01792 0.04469 0.00849 0.0015 0.06722 0.03681 0.06204 0.03167 0.03988 0.02082 -0.00255 -0.01162 0.22457 -0.02459 0.1119 0.09682 0.08323 0.02987 0.05421 0.2547 0.22446 0.15822 0.04838 0.49823 0.24739 0.06581 -0.06017 0.34456| 0.23303 0.03492 0.20778 -0.06212 0.15381 0.11247 0.09832 -0.10116 0.21283 0.13941 -0.03858 -0.01984 0.19567 0.23547 -0.14506 0.01415 0.02815 0.02582 0.02159 0.02724 0.03151 0.03518 0.03962 0.04705 0.04147 0.05294 0.06591 0.06383 0.04317 0.03891 0.07059 0.00796 -0.0079 0.00478 0.02853 0.02928 0.01796 0.01765 0.01301 0.00713 0.01275 0.01678 0.00963 0.01907 0.03476 0.03101 0.04637 0.06228 0.05524 0.03312 0.03413 0.087 0.12328 1974 -0.26539 1975 0.3725 1976 0.23675 1977 -0.07388 1978 0.0644 1979 0.18353 1980 0.32266 1981 -0.05053 1982 0.21483 1983 0.225 1984 0.06152 1985 0.31648 1986 0.18603 1987 0.05171 1988 0.16608 1989 0.31686 1990 -0.03104 1991 0.30466 1992 0.07619 1993 0.10079 1994 0.0132 1995 0.37578 1996 0.2296 1997 0.33363 1998 0.28579 -0.27327 0.82769 0.57116 0.19915 0.2042 0.39698 0.29141 0.14617 0.3225 0.48048 -0.02495 0.29125 0.05908 -0.09204 0.20288 0.01488 -0.36325 0.41799 0.22075| 0.13792 -0.01096 0.20056 0.21511 0.3208|| -0.11975 0.00233 0.11039 0.14557 0.0551 0.01833 -0.01558 -0.04976 0.08977 0.34898 0.07317 0.17103 0.29486 0.20913 -0.01578 0.13793 0.1531 0.08606 0.15869 0.10642 0.14662 -0.02435 0.21991 0.04239 0.10847 0.10908 -0.2448 0.34493 0.14712 0.02002 0.18216 0.12671 0.27721 -0.03305 0.11272 0.2328 0.05773 0.4177 0.42799 0.16764 0.2395 0.17194 -0.16517 0.18966 -0.0466 0.23129 0.05584 0.21318 0.13993 0.16227 0.24795 0.08078 0.05821 0.05156 0.05152 0.07308 0.1069 0.11523 0.14856 0.10664 0.08847 0.09956 0.0767 0.06057 0.05384 0.06323 0.08221 0.0768 0.05507 0.03401 0.02899 0.0388 0.05532 0.05145 0.05082 0.04781 0.06962 0.04824 0.0672 0.09035 0.13308 0.12521 0.08912 0.03797 0.03833 0.03943 0.03793 0.01089 0.04423 0.0442 0.04656 0.061 0.03081 0.02897 0.02755 0.02652 0.02555 0.03322 0.0168 0.01607 0.25354 0.04561 -0.0126 -0.0249 0.32781| -0.05624 0.69151 0.31392 0.03988 0.26379 1999 0.21042 2000 -0.09104 2001 -0.11886 2002 -0.22101 2003 0.28685 2004 0.10882 2005 0.04911 2006 0.15795 2007 0.05494 2008 -0.36998 2009 0.26464 2010 0.15064 2011 0.02112 2012 0.16003 2013 0.32388 2014 0.1368 -0.03037 0.11694) 0.11461 0.11181 0.09229 0.0651 0.07734 0.04167 0.04742 0.13449 0.00018 0.07972 0.14703 0.04513 -0.03067 0.11658 -0.12928 -0.16521 -0.19541 0.33761 0.15247 0.10023 0.20652 0.09566 -0.40334 0.30793 0.12339 -0.05017 0.16537 0.27365 0.05504 -0.111 -0.45864 1.12127 0.3361 -0.07155 0.21311 0.50814 -0.04541 0.02697 0.03384 0.01563 0.02357 0.0188 0.03275 0.03417 0.02526 0.04086 0.00101 0.02709 0.01496 0.02967 0.01733 0.01518 0.00748 0.05756 0.03779 0.01634 0.01018 0.012 0.02963 0.04786 0.04675 0.01474 0.00097 0.00122| 0.00043 0.00057| 0.00028 0.00016 Given the spreadsheet, E, containing the realized return of the S&P 500 from 1926-2014. Starting in 1929, divide the next 80 years (1929-2008) of the sample into four periods of 20 years each. For each 20-year period, calculate the final amount an investor would have earned given a $2,500 initial investment. Also express your answer as an annualized return. If risk were eliminated by holding stocks for 20 years, what would you expect to find? What can you conclude about long-run diversification? The amount after the 1929-1948 period is and the return is %. (Round the amount to the nearest cent and the return to four decimal places.) The amount after the 1949-1968 period is $and the return is 1% (Round the amount to the nearest cent and the return to four decimal places.) The amount after the 1969-1988 period is sand the return is %. (Round the amount to the nearest cent and the return to four decimal places.) The amount after the 1989-2008 period is and the return is % (Round the amount to the nearest cent and the return to four decimal places) If risk were eliminated by holding stocks for 20 years, what would you expect to find? What can you conclude about long-run diversification? (Select from the drop-down menus.) If risk were eliminated by holding stocks for 20 years, you would expect to find returns for all four periods, which you S&P 500 Small Stocks Corp Bonds World Portfolio Treasury Bills CPI 1926 0.11138 -0.072 0.06285 0.228 0.03194 -0.01188 1927 0.37126 0.25754 0.0655 0.25326 0.03125 -0.02163 1928 0.43308 0.46872 0.03377 0.33463 0.03824 -0.01229 1929 -0.08907 -0.50467 0.04321 -0.07692 0.04737 0.00746 1930 -0.25257 -0.45583 0.06343 -0.22574 0.02347 -0.0642 1931 -0.43858 -0.50216 -0.0238 -0.39305 0.01023 -0.09235 1932 -0.08861 0.08696 0.12198 0.0303 0.00806 -0.10465 1933 0.52895 1.872 0.052551 0.66449 0.00293 0.00974 1934 -0.02341 0.25209 0.09728 0.02552 0.00155 0.01286 1935 0.47208 0.64739 0.0686 0.22782 0.00165 0.03175 1936 0.32801 0.87508 0.0622 0.19283 0.00175 0.01231 1937 -0.35258 -0.53403 0.02546 -0.1695 0.00319 0.0304 1938 0.33199 0.26275 0.04357 0.05614 0.00041 -0.0295 1939 -0.0091 0.00184 0.04247 -0.01441 0.00008 0 1940 -0.10082 -0.1234 0.04512 0.03528 -0.00058 0.00912 1941 -0.11767 -0.13728 0.01788 0.18744 0.00042 0.0994 1942 0.21076 0.52504 0.031191 0.01189 0.00262 0.09041 1943 0.25758 1 0.03365 0.19895 0.0034 0.02764 1944 0.19694 0.60408 0.03101 -0.1024 0.00321 0.02445 1945 0.36461 0.82665 0.03512 0.11032 0.00321 0.02148 1946 -0.0818 -0.12608 0.02558 -0.15124 0.00352 0.18224 1947 0.0524 -0.02658 0.0045 0.03196 0.00461 0.08893 1948 0.05099 -0.06609 0.03707 -0.0573 0.00979 0.02904 0.01106 -0.02116 0.01213 0.05946| 0.01483 0.06122 0.01642 0.00641 0.0178 0.00863 0.01555 0.02422 0.03129 1949 0.18065 1950 0.30579 1951 0.24553 1952 0.18501 1953 -0.01099 1954 0.52404|| 1955 0.31429 1956 0.06627 1957 -0.10853 1958 0.43344 1959 0.11904 1960 0.00483 1961 0.26811 1962 -0.08784 1963 0.22691 1964 0.16358 1965 0.12356 1966 -0.10105 1967 0.23942 1968 0.11002 1969 -0.08466 1970 0.03986 1971 0.14325 1972 0.18936 1973 -0.14791 0.21502 0.45908 0.09767 0.06472 -0.05985 0.65232 0.2211 0.03459 -0.15053 0.70923 0.1868 -0.05004 0.30836 -0.1295 0.18093 0.19405 0.36365 -0.07302 0.77916| 0.47611 -0.32219 -0.04503 0.16347 0.04222 -0.35936 0.04327 0.01891 -0.0021 0.03427 0.02061 0.04658 0.01075 -0.01792 0.04469 0.00849 0.0015 0.06722 0.03681 0.06204 0.03167 0.03988 0.02082 -0.00255 -0.01162 0.22457 -0.02459 0.1119 0.09682 0.08323 0.02987 0.05421 0.2547 0.22446 0.15822 0.04838 0.49823 0.24739 0.06581 -0.06017 0.34456| 0.23303 0.03492 0.20778 -0.06212 0.15381 0.11247 0.09832 -0.10116 0.21283 0.13941 -0.03858 -0.01984 0.19567 0.23547 -0.14506 0.01415 0.02815 0.02582 0.02159 0.02724 0.03151 0.03518 0.03962 0.04705 0.04147 0.05294 0.06591 0.06383 0.04317 0.03891 0.07059 0.00796 -0.0079 0.00478 0.02853 0.02928 0.01796 0.01765 0.01301 0.00713 0.01275 0.01678 0.00963 0.01907 0.03476 0.03101 0.04637 0.06228 0.05524 0.03312 0.03413 0.087 0.12328 1974 -0.26539 1975 0.3725 1976 0.23675 1977 -0.07388 1978 0.0644 1979 0.18353 1980 0.32266 1981 -0.05053 1982 0.21483 1983 0.225 1984 0.06152 1985 0.31648 1986 0.18603 1987 0.05171 1988 0.16608 1989 0.31686 1990 -0.03104 1991 0.30466 1992 0.07619 1993 0.10079 1994 0.0132 1995 0.37578 1996 0.2296 1997 0.33363 1998 0.28579 -0.27327 0.82769 0.57116 0.19915 0.2042 0.39698 0.29141 0.14617 0.3225 0.48048 -0.02495 0.29125 0.05908 -0.09204 0.20288 0.01488 -0.36325 0.41799 0.22075| 0.13792 -0.01096 0.20056 0.21511 0.3208|| -0.11975 0.00233 0.11039 0.14557 0.0551 0.01833 -0.01558 -0.04976 0.08977 0.34898 0.07317 0.17103 0.29486 0.20913 -0.01578 0.13793 0.1531 0.08606 0.15869 0.10642 0.14662 -0.02435 0.21991 0.04239 0.10847 0.10908 -0.2448 0.34493 0.14712 0.02002 0.18216 0.12671 0.27721 -0.03305 0.11272 0.2328 0.05773 0.4177 0.42799 0.16764 0.2395 0.17194 -0.16517 0.18966 -0.0466 0.23129 0.05584 0.21318 0.13993 0.16227 0.24795 0.08078 0.05821 0.05156 0.05152 0.07308 0.1069 0.11523 0.14856 0.10664 0.08847 0.09956 0.0767 0.06057 0.05384 0.06323 0.08221 0.0768 0.05507 0.03401 0.02899 0.0388 0.05532 0.05145 0.05082 0.04781 0.06962 0.04824 0.0672 0.09035 0.13308 0.12521 0.08912 0.03797 0.03833 0.03943 0.03793 0.01089 0.04423 0.0442 0.04656 0.061 0.03081 0.02897 0.02755 0.02652 0.02555 0.03322 0.0168 0.01607 0.25354 0.04561 -0.0126 -0.0249 0.32781| -0.05624 0.69151 0.31392 0.03988 0.26379 1999 0.21042 2000 -0.09104 2001 -0.11886 2002 -0.22101 2003 0.28685 2004 0.10882 2005 0.04911 2006 0.15795 2007 0.05494 2008 -0.36998 2009 0.26464 2010 0.15064 2011 0.02112 2012 0.16003 2013 0.32388 2014 0.1368 -0.03037 0.11694) 0.11461 0.11181 0.09229 0.0651 0.07734 0.04167 0.04742 0.13449 0.00018 0.07972 0.14703 0.04513 -0.03067 0.11658 -0.12928 -0.16521 -0.19541 0.33761 0.15247 0.10023 0.20652 0.09566 -0.40334 0.30793 0.12339 -0.05017 0.16537 0.27365 0.05504 -0.111 -0.45864 1.12127 0.3361 -0.07155 0.21311 0.50814 -0.04541 0.02697 0.03384 0.01563 0.02357 0.0188 0.03275 0.03417 0.02526 0.04086 0.00101 0.02709 0.01496 0.02967 0.01733 0.01518 0.00748 0.05756 0.03779 0.01634 0.01018 0.012 0.02963 0.04786 0.04675 0.01474 0.00097 0.00122| 0.00043 0.00057| 0.00028 0.00016