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 1989 31.34 19.49 8.38 1990 3.20 7.13 7.84 1991 30.66 18.39 5.60 1992 7.71 7.79 3.50 1993 9.87 15.48 2.90 1994 1.29 7.18 3.91 1995 37.71 31.67 5.60 1996 23.07 0.81 5.20 1997 33.17 15.08 5.25 1998 28.58 13.52 4.85 1999 21.04 8.74 4.69 2000 9.10 20.27 5.88 2001 11.89 4.21 3.86 2002 22.10 16.79 1.63 2003 28.69 2.38 1.02 2004 10.88 7.71 1.19 2005 4.91 6.50 2.98 2006 11.78 1.21 4.81 2007 3.53 10.25 4.67 2008 38.49 1.34 1.55 a. Calculate the average rate of return and standard deviation of the "Excess returns" after a continuous compounding transformation was performed.(Round your answers to 2 decimal places.) Large Stock Long Term T-Bonds Average rate of return % % Standard deviation % % b. What was the correlation coefficient of their annual returns? (Round your answer to 2 decimal places.) Correlation coefficient c. What would have been the average return and standard deviation of portfolios with differing weights in the two assets? For example, consider weights in stocks starting at zero and incrementing by .10 up to a weight of 1.0. (Round your answers to 2 decimal places.) Weights in Portfolio Stocks Bonds Mean Standard deviation 0.0 1 % % 0.1 0.9 % % 0.2 0.8 % % 0.3 0.7 % % 0.4 0.6 % % 0.5 0.5 % % 0.6 0.4 % % 0.7 0.3 % % 0.8 0.2 % % 0.9 0.1 % % 0.10 0 % % d. What was the average return and standard deviation of the minimum-variance combination of stocks and bonds? (Round your answers to 2 decimal places.) Weights in Portfolio Stocks Bonds Mean Standard deviation Minimum-Variance 0.1338 0.8662 % %