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Provide a detailed commentary on the investment performance of Real Estate and US Inflation summarized in the attached Google Sheets below. Your commentary must highlight
Provide a detailed commentary on the investment performance of Real Estate and US Inflation summarized in the attached Google Sheets below. Your commentary must highlight the key differences or similarities across asset classes with Real Estate and US inflation based on the highest possible uses of the statistics provided for two separate but overlapping periods.
A B D E G 1 Asset Class 2 3 1926-2020 1970-2020 Return (%) Risk (%) Return (%) Risk (%) Geometric average Arithmetic average Standard deviation Geometric average Arithmetic average Standard deviation 12.1 16.7 32.6 12.5 15.1 23.4 9.9 11.9 20.4 10 11.6 17.9 4 Small-firm stocks 5 6 5.9 6.2 8.3 8.9 9.3 10.2 7 5.5 5.9 9.5 8.7 9.3 11.7 Large-firm stocks Long-term corporate bonds Long-term government bonds Medium-term government bonds 30-day treasuries Gold 8 5.4 5.5 5.7 8 8.2 6.6 9 3.7 3.1 5.6 5.6 3.1 3.6 5.1 10 6.9 22.7 9.4 12.6 29.8 11 Real estate 3.7 3.9 6.7 5 5.2 6.3 12 US inflation 3 3.1 4.2 4.4 4.4 3.1 A B D E G 1 Asset Class 2 3 1926-2020 1970-2020 Return (%) Risk (%) Return (%) Risk (%) Geometric average Arithmetic average Standard deviation Geometric average Arithmetic average Standard deviation 12.1 16.7 32.6 12.5 15.1 23.4 9.9 11.9 20.4 10 11.6 17.9 4 Small-firm stocks 5 6 5.9 6.2 8.3 8.9 9.3 10.2 7 5.5 5.9 9.5 8.7 9.3 11.7 Large-firm stocks Long-term corporate bonds Long-term government bonds Medium-term government bonds 30-day treasuries Gold 8 5.4 5.5 5.7 8 8.2 6.6 9 3.7 3.1 5.6 5.6 3.1 3.6 5.1 10 6.9 22.7 9.4 12.6 29.8 11 Real estate 3.7 3.9 6.7 5 5.2 6.3 12 US inflation 3 3.1 4.2 4.4 4.4 3.1Step by Step Solution
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