Homework Score: 0 of 1 pt 5 of 11 (0 complete) HW Score: 0%, 0. P8-12 (similar to) Question Help Variance and standard deviation. Calculate the variance and the standard deviation of U.S. Treasury bills, long-term government bonds, and small-company stocks for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989 from Table 8.1. Which had the highest variance? Which had the lowest variance? Click on the Spreadsheet Learning Aid to see Table 8.1-Year-by-Year Returns, 1950-1999. Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. Correct: 0 What is the variance of U.S. Treasury bills for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989? Question % (Round to five decimal Question The variance of U.S. Treasury bills for 1950 to 1959 is places ) Question Enter your answer in the answer box and then click Check Answers 25 parts remaining Arial 10 - ' ' 29 Wrap Text LE General Paste BIU- a A- Merge & Center - $ - %) Clipboard Font Conditional Format as Cell Formatting Table Styles Styles Alignment Number 14 D E 4 A B 2 Table 8.1 Year-by-Year Returns, 1950-1999 F G H 4 5 6 7 8 9 10 11 Three-Month U.S.Treasury Year Bills 1950 1.20% 1951 1.49% 1952 1.66% 1953 1.82% 1954 0.86% 1955 1.57% 1956 2.46% 1957 3.14% 1958 1.54% 1959 2.95% 1960 2.66% 1961 2.13% 1962 2.72% 1963 3.12% 1964 3.54% 1965 3.94% 1966 4 77% Table 8.1 Year-by-Year Returns Long-Term Government Bonds -0.96% -1.95% 1.93% 3.83% 4.88% -1.34% -5.12% 9.46% -3.71% -3.55% 13.78% 0.19% 6.81% -0.49% 4.51% -0.27% 3. 70% + Large Company Stocks 32.68% 23.47% 18.91% -1.74% 52.55% 31.44% 6.45% -11.14% 43.78% 12.95% 0.19% 27.63% -8.79% 22.63% 16.67% 12.50% -10.25% 12 13 14 15 16 17 18 19 20 21 Small Company Stocks 48.45% 9.41% 6.36% -5.66% 65.13% 21.84% 3.82% -15.03% 70.63% 17 82% -5.16% 30.48% -16.41% 12.20% 18.75% 37 67% -8 (20% a O Type here to search Paste ce Wrap lext BIU General - - a-A- Merge & Center $ - %, 48 Chipboard Font Insert Delete Alignment Conditional Format as Cell Formatting Table Styles Styles Number 14 X fa Cells G H J B C 20 1965 3.94% 21 1966 4.77% 22 1967 4.24% 23 1968 5.24% 24 1969 6.59% 25 1970 6.50% 26 1971 4.34% 27 1972 3.81% 28 1973 6.91% 29 1974 7.93% 30 1975 5.80% 31 1976 5.06% 32 1977 5.10% 33 1978 7.15% 34 1979 10.45% 35 1980 11.57% 36 1981 14.95% 37 1982 10.71% 38 1983 8.85% 39 1984 10.02% 40 1985 7.83% AAO Table 8.1 Year-by-Year Returns D -0.27% 3.70% -7.41% -1.20% -6.52% 12.69% 17.47% 5.55% 1.40% 5.53% 8.50% 11.07% 0.90% -4.16% 9.02% 17 3.61% 6.52% -0.53% 15.29% 32.68% E 12.50% -10.25% 24.11% 11.00% -8.33% 4.10% 14.17% 19.14% -14.75% -26.40% 37.26% 23.98% -7.26% 6.50% 18.77% 32 48% -4.98% 22.09% 22.37% 6.46% 32.00% inn F 37.67% -8.08% 103.39% 50.61% -32.27% -16.54% 18.44% -0.62% -40.54% -29.74% 69.54% 54.81% 22.02% 22.29% 43.99% 35.34% 7.79% 27.44% 34.49% -14.02% 28.21% Type here to search a ==== Merge & Center $ - % Conditional Format as Cell Formatting Table Styles Styles Chipboard Font Alignment Number 14 B G H 1985 1986 1987 1988 1989 1990 1991 A 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 C 7.83% 6.18% 5.50% 6.44% 8.32% 7.86% 5.65% 3.54% 2.97% 3.91% 5.58% 5.50% 5.32% 5.11% 4.80% D 32.68% 23.96% -2.65% 8.40% 19.49% 7.13% 18.39% 7.79% 15.48% -7.18% 31.67% -0.81% 15.08% 13.52% -8.74% E 32.00% 18.40% 5.34% 16.86% 31.34% -3.20% 30.66% 7.71% 9.87% 1.29% 37.71% 23.07% 33.17% 28.58% 21.04% 1992 F 28.21% 3.40% -13.95% 21.72% 8.37% -27 08% 50.24% 27.84% 20.30% -3.34% 33.21% 16.50% 22.36% -2.55% 21.26% 1993 1994 1995 1996 1997 1998 1999 50-year average Standard Deviation 55 5.226% 5.936% 14.890% 17.103% 2.980% 56 57 9.493% 16.695% 29.043% Note: Sources for annual returns are the Center for Research on Security Prices, Standard Table 8.1 Year-by-Year Returns Type here to search