Tyler, age 26, currently earns $100,000 per year working as an insurance broker and has no savings. He expects to earn, on average, 10.5 percent per year on his future investments and retire at age 67, possibly living to age 92. He determines his wage replacement ratio is 85 percent. He also expects that inflation will average 2.5 percent for his entire life expectancy. He has sent for and received his Social Security benefit statement, which indicated that his Social Security retirement benefit in todays dollars is $18,000 per year.

1. What is the annualized average arithmetic monthly return for SPY over the sample period?

2. What is the annualized average arithmetic monthly return for VBMFX over the sample period?

3. What is the annualized monthly standard deviation in returns for SPY over the sample period?

4. What is the annualized monthly standard deviation in returns for VBMFX over the sample period?