Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Standard deviation. Calculate the standard deviation of U.S. Treasury bills, long-term government bonds, and large-company stocks for 1985 to 1994 from Table 8.1. Which had

Standard deviation. Calculate the standard deviation of U.S. Treasury bills, long-term government bonds, and large-company stocks for 1985 to 1994 from Table 8.1. Which had the highest variance? Which has the lowest variance? Click on the Spreadsheet Learning Aid to see Table 8.1long dashYear-by-Year Returns, 1950-1999.

Table 8.1 Year-by-Year Returns, 1950-1999
Year Three-Month U.S.Treasury Bills Long-Term Government Bonds Large Company Stocks Small Company Stocks
1950 1.20% -0.96% 32.68% 48.45%
1951 1.49% -1.95% 23.47% 9.41%
1952 1.66% 1.93% 18.91% 6.36%
1953 1.82% 3.83% -1.74% -5.66%
1954 0.86% 4.88% 52.55% 65.13%
1955 1.57% -1.34% 31.44% 21.84%
1956 2.46% -5.12% 6.45% 3.82%
1957 3.14% 9.46% -11.14% -15.03%
1958 1.54% -3.71% 43.78% 70.63%
1959 2.95% -3.55% 12.95% 17.82%
1960 2.66% 13.78% 0.19% -5.16%
1961 2.13% 0.19% 27.63% 30.48%
1962 2.72% 6.81% -8.79% -16.41%
1963 3.12% -0.49% 22.63% 12.20%
1964 3.54% 4.51% 16.67% 18.75%
1965 3.94% -0.27% 12.50% 37.67%
1966 4.77% 3.70% -10.25% -8.08%
1967 4.24% -7.41% 24.11% 103.39%
1968 5.24% -1.20% 11.00% 50.61%
1969 6.59% -6.52% -8.33% -32.27%
1970 6.50% 12.69% 4.10% -16.54%
1971 4.34% 17.47% 14.17% 18.44%
1972 3.81% 5.55% 19.14% -0.62%
1973 6.91% 1.40% -14.75% -40.54%
1974 7.93% 5.53% -26.40% -29.74%
1975 5.80% 8.50% 37.26% 69.54%
1976 5.06% 11.07% 23.98% 54.81%
1977 5.10% 0.90% -7.26% 22.02%
1978 7.15% -4.16% 6.50% 22.29%
1979 10.45% 9.02% 18.77% 43.99%
1980 11.57% 13.17% 32.48% 35.34%
1981 14.95% 3.61% -4.98% 7.79%
1982 10.71% 6.52% 22.09% 27.44%
1983 8.85% -0.53% 22.37% 34.49%
1984 10.02% 15.29% 6.46% -14.02%
1985 7.83% 32.68% 32.00% 28.21%
1986 6.18% 23.96% 18.40% 3.40%
1987 5.50% -2.65% 5.34% -13.95%
1988 6.44% 8.40% 16.86% 21.72%
1989 8.32% 19.49% 31.34% 8.37%
1990 7.86% 7.13% -3.20% -27.08%
1991 5.65% 18.39% 30.66% 50.24%
1992 3.54% 7.79% 7.71% 27.84%
1993 2.97% 15.48% 9.87% 20.30%
1994 3.91% -7.18% 1.29% -3.34%
1995 5.58% 31.67% 37.71% 33.21%
1996 5.50% -0.81% 23.07% 16.50%
1997 5.32% 15.08% 33.17% 22.36%
1998 5.11% 13.52% 28.58% -2.55%
1999 4.80% -8.74% 21.04% 21.26%
50-year average 5.226% 5.936% 14.890% 17.103%
Standard Deviation 2.980% 9.493% 16.695% 29.043%

1. What is the standard deviation of U.S. Treasury bills for 1985 to 1994?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analysis Of Financial Data

Authors: Gary Koop

1st Edition

0470013214, 978-0470013212

More Books

Students also viewed these Finance questions