Standard deviation.

Calculate the standard deviation of U.S. Treasury bills, long-term government bonds, and large-company stocks for 1990 to 19991990 to 1999 from Table 8.1. Which had the highest variance? Which had the lowest variance? Click on the Spreadsheet Learning Aid to see Table 8.1long dashYear-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. What is the standard deviation of U.S. Treasury bills for 1990 to 19991990 to 1999?

_____% (Round to three decimal places.)

Variance Calculation Year Observation Average Difference (a-b) Squared Difference (Actual Return ([a-b]) Return) (a) (6) 1990 -0.2708 0.15874 -0.2708 - 0.15874 = -0.42954 (-0.42954)2 = 0.18450461 1991 0.5024 0.15874 0.5024 0.15874 = 0.34366 (0.34366)2 = 0.11811022 1992 0.2784 0.15874 0.2784 0.15874 = 0.11966 (0.11966)2 = 0.01431852 0.2030 0.15874 = 0.04426 1993 0.2030 0.15874 (0.04426)2 = 0.00195895 1994 -0.0334 0.15874 = 20.19214 -0.0334 0.15874 | (-0.19214)2 = 0.03691778 0.3321 0.15874 = 0.17336 1995 0.3321 0.15874 (0.17336)2 = 0.03005369 0.1650 - 0.15874 = 0.00626 1996 0.1650 0.15874 (0.00626)2 = 0.000039188 1997 0.2236 0.15874 0.2236 0.15874 = 0.06486 (0.06486)2 = 0.00420682 -0.0255 0.15874 = -0.18424 -0.0255 1998 0.15874 (-0.18424)2 = 0.03394438 0.2126 0.15874 = 0.05386 1999 0.2126 0.15874 (0.0539)2 = 0.0029009 E = 0.42694702 Total 1.5874 sum of the squared differences variance = - 10 - 1 0.42694702 102 = 0.047438558 Variance Calculation Year Observation Average Difference (a-b) Squared Difference (Actual Return ([a-b]) Return) (a) (6) 1990 -0.2708 0.15874 -0.2708 - 0.15874 = -0.42954 (-0.42954)2 = 0.18450461 1991 0.5024 0.15874 0.5024 0.15874 = 0.34366 (0.34366)2 = 0.11811022 1992 0.2784 0.15874 0.2784 0.15874 = 0.11966 (0.11966)2 = 0.01431852 0.2030 0.15874 = 0.04426 1993 0.2030 0.15874 (0.04426)2 = 0.00195895 1994 -0.0334 0.15874 = 20.19214 -0.0334 0.15874 | (-0.19214)2 = 0.03691778 0.3321 0.15874 = 0.17336 1995 0.3321 0.15874 (0.17336)2 = 0.03005369 0.1650 - 0.15874 = 0.00626 1996 0.1650 0.15874 (0.00626)2 = 0.000039188 1997 0.2236 0.15874 0.2236 0.15874 = 0.06486 (0.06486)2 = 0.00420682 -0.0255 0.15874 = -0.18424 -0.0255 1998 0.15874 (-0.18424)2 = 0.03394438 0.2126 0.15874 = 0.05386 1999 0.2126 0.15874 (0.0539)2 = 0.0029009 E = 0.42694702 Total 1.5874 sum of the squared differences variance = - 10 - 1 0.42694702 102 = 0.047438558