The following table contains the historic returns from large stocks and long-term Treasury bonds over the last 20 years. Analyze the risk-return trade-off that would have characterized these portfolios.

Year	Large Stock	Long-Term T-Bonds	T-Bills
2000	11.71	14.49	5.89
2001	11.42	4.03	3.78
2002	21.13	14.66	1.63
2003	31.77	1.28	1.02
2004	11.92	5.19	1.20
2005	6.05	3.10	2.96
2006	15.39	2.27	4.79
2007	5.71	9.64	4.67
2008	36.87	17.67	1.47
2009	28.36	5.83	0.10
2010	17.49	7.45	0.12
2011	0.48	16.60	0.04
2012	16.34	3.59	0.06
2013	35.23	6.90	0.03
2014	11.72	10.15	0.02
2015	0.08	1.07	0.01
2016	13.49	0.70	0.1886
2017	22.29	2.80	0.7914
2018	5.22	0.04	1.7066
2019	30.43	8.2622	2.15

Required:

a. Calculate the average rate of return and standard deviation of the "Excess returns" after a continuous compounding transformation was performed. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Weiight in Stocks Weigfht in bonds

0 1

.1 .9

.2 .8

.3 .7

.4 .6

.5 .5

.6 .4

.7 .3

.8 .2

.9 .1

1 0

d. What were the average return and standard deviation of the minimum-variance combination of stocks and bonds? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Weight in stocks weight in bonds portfolio mean Portfolio standard dev.

Minimum Variance: .1938 .8062