Q5 Q11

\begin{tabular}{rrrrrrr} 1996 & 0.22960 & 0.21511 & 0.04239 & 0.13993 & 0.05145 & 0.03322 \\ 1997 & 0.33363 & 0.32080 & 0.10847 & 0.16227 & 0.05082 & 0.01688 \\ 1998 & 0.28579 & -0.11975 & 0.10908 & 0.24795 & 0.04781 & 0.01607 \\ 1999 & 0.21042 & -0.01260 & -0.03037 & 0.25354 & 0.04561 & 0.02697 \\ 2000 & -0.09104 & -0.02490 & 0.11694 & -0.12928 & 0.05756 & 0.03384 \\ 2001 & -0.11886 & 0.32781 & 0.11461 & -0.16521 & 0.03779 & 0.01563 \\ 2002 & -0.22101 & -0.05624 & 0.11181 & -0.19541 & 0.01634 & 0.02357 \\ 2003 & 0.28685 & 0.69151 & 0.09229 & 0.33761 & 0.01018 & 0.01880 \\ 2004 & 0.10882 & 0.31392 & 0.06510 & 0.15247 & 0.01200 & 0.03275 \\ 2005 & 0.04911 & 0.03988 & 0.07734 & 0.10023 & 0.02963 & 0.03417 \\ 2006 & 0.15795 & 0.26379 & 0.04167 & 0.20652 & 0.04786 & 0.02526 \\ 2007 & 0.05494 & -0.11100 & 0.04742 & 0.09566 & 0.04675 & 0.04086 \\ 2008 & -0.36998 & -0.45864 & 0.13449 & -0.40334 & 0.01474 & 0.00101 \\ 2009 & 0.26464 & 1.12127 & 0.00018 & 0.30793 & 0.00097 & 0.02709 \\ 2010 & 0.15064 & 0.33610 & 0.07972 & 0.12339 & 0.00122 & 0.01496 \\ 2011 & 0.02112 & -0.07155 & 0.14703 & -0.05017 & 0.00043 & 0.02967 \\ 2012 & 0.16003 & 0.21311 & 0.04513 & 0.16537 & 0.00057 & 0.01733 \\ 2013 & 0.32388 & 0.50814 & -0.03067 & 0.27365 & 0.00028 & 0.01518 \\ 2014 & 0.13688 & -0.04541 & 0.11658 & 0.05504 & 0.00016 & 0.00748 \\ 2015 & 0.01384 & -0.23168 & 0.01258 & 0.00494 & 0.00009 & 0.00724 \\ 2016 & 0.11960 & 0.51816 & 0.06825 & 0.07276 & 0.00188 & 0.02084 \\ 2017 & 0.21832 & 0.07251 & 0.05617 & 0.23072 & 0.00791 & 0.02112 \\ \hline \end{tabular} Given the data from the following table: and the calculated average returns and standard deviations in the following table: a. Which asset was riskiest? b. Compare the standard deviations of the assets in the 1990s to their standard deviations in the Great Depression (the 1930s). Which had the greatest difference between the two periods? c. From just looking at the data from the 1990 s, what would you conclude about small stocks? a. Over the period shown in the table, which asset was riskiest? (Select from the drop-down menu.) The riskiest asset class was saw the largest decrease in standard deviation from the Great Depression to the 1990 s. c. If you only had information about the 1990 s, what would you conclude about the relative risk of investing in small stocks? (Select from the drop-down menu.) From just looking at the data from the 1990 s, you would conclude that small stocks have compared to large stocks. \begin{tabular}{lrccccc} Asset Class & S\&P 500 & Small Stocks & Corporate Bonds & World Portfolio & Treasury Bills & CPI \\ \hline Average Return (1929-1940) & 2.55% & 15.65% & 5.35% & 2.94% & 0.83% & 1.48% \\ Standard Deviation (1929-1940) & 31.90% & 71.03% & 3.59% & 26.40% & 1.40% & 4.70% \\ Average Return (1990-1999) & 18.99% & 10.07% & 9.23% & 12.82% & 4.85% & 2.94% \\ Standard Deviation (1990-1999) & 14.16% & 23.02% & 7.86% & 13.94% & 1.33% & 1.24% \\ Difference in Standard Deviation & 17.74% & 48.01% & 4.27% & 12.46% & 0.07% & 3.46% \\ \hline \end{tabular}