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SEE ATTACHED DATA TABLE: a. Compute the average return for each of the assets from 1 9 2 9 to 1 9 4 0 (the
SEE ATTACHED DATA TABLE:
a. Compute the average return for each of the assets from 1929 to 1940 (the GreatDepression). b. Compute the variance and standard deviation for each of the assets from 1929 to 1940. c. Which asset was riskiest during the GreatDepression? How does that fit with yourintuition?
Year S&P 500 Small Stocks Corp Bonds World Portfolio Treasury Bills 1929 -0.08906 -0.43081 0.0432 -0.07692 0.04471 1930 -0.25256 -0.44698 0.06343 -0.22574 0.02266 1931 -0.43861 -0.54676 -0.0238 -0.39305 0.01153 1932 -0.08854 -0.00471 0.12199 0.0303 0.00882 1933 0.5288 2.16138 0.05255 0.66449 0.00516 1934 -0.02341 0.57195 0.09728 0.02552 0.00265 1935 0.47221 0.69112 0.0686 0.22782 0.00171 1936 0.32796 0.70023 0.06219 0.19283 0.00173 1937 -0.35258 -0.56131 0.02546 -0.1695 0.00267 1938 0.33204 0.08928 0.04357 0.05614 0.0006 1939 -0.00914 0.04327 0.04247 -0.01441 0.00042 1940 -0.10078 -0.28063 0.04512 0.03528 0.00037 CPI 0.00585 -0.06395 -0.09317 -0.10274 0.00763 0.01515 0.02985 0.01449 0.02857 -0.02778 0 0.00714Step by Step Solution
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