Variance and standard deviation. Calculate the variance and the standard deviation of U.S. Treasury bills, long-term government bonds, and small-company stocks for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989 from Table 8.1. Which had the highest variance? Which had the lowest variance? Click on the Spreadsheet Learning Aid to see Table 8.1-Year-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, Table 8.1 Year-by-Year Returns, 1950-1999 Three-Month Long-Term U.S.Treasury Government Year Bills Bonds 1950 1.20% -0.96% 1951 1.49% -1.95% 1952 1.66% 1.93% 1953 1.82% 3.83% 1954 0.86% 4.88% 1955 1.57% -1.34% 1956 2.46% -5.12% 1957 3.14% 9.46% 1958 1.54% -3.71% 1959 2.95% -3.55% 1960 2.66% 13.78% 1961 2.13% 0.19% 1962 2.72% 6.81% 1963 3.12% -0.49% 1964 3.54% 4.51% 1965 3.94% -0.27% 1966 4.77% 3.70% 1967 4.24% -7.41% 1968 5.24% -1.20% 1969 6.59% -6.52% 1970 6.50% 12.69% 1971 4.34% 17.47% 1972 3.81% 5.55% 1973 6.91% 1.40% 1974 7.93% 5.53% 1975 5.80% 8.50% 1976 5.06% 11.07% 1977 5.10% 0.90% 1978 7.15% -4.16% 1979 10.45% 9.02% 1980 11.57% 13.17% 1981 14.95% 3.61% 1982 10.71% 6.52% Large Company Stocks 32.68% 23.47% 18.91% -1.74% 52.55% 31.44% 6.45% -11.14% 43.78% 12.95% 0.19% 27.63% -8.79% 22.63% 16.67% 12.50% -10.25% 24.11% 11.00% -8.33% 4.10% 14.17% 19.14% -14.75% -26.40% 37.26% 23.98% -7.26% 6.50% 18.77% 32.48% -4.98% 22.09% Small Company Stocks 48.45% 9.41% 6.36% -5.66% 65.13% 21.84% 3.82% -15.03% 70.63% 17.82% -5.16% 30.48% -16.41% 12.20% 18.75% 37.67% -8.08% 103.39% 50.61% -32.27% -16.54% 18.44% -0.62% -40.54% -29.74% 69.54% 54.81% 22.02% 22.29% 43.99% 35.34% 7.79% 27.44% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 50-year average Standard Deviation 11.57% 14.95% 10.71% 8.85% 10.02% 7.83% 6.18% 5.50% 6.44% 8.32% 7.86% 5.65% 3.54% 2.97% 3.91% 5.58% 5.50% 5.32% 5.11% 4.80% 13.17% 3.61% 6.52% -0.53% 15.29% 32.68% 23.96% -2.65% 8.40% 19.49% 7.13% 18.39% 7.79% 15.48% -7.18% 31.67% -0.81% 15.08% 13.52% -8.74% 32.48% -4.98% 22.09% 22.37% 6.46% 32.00% 18.40% 5.34% 16.86% 31.34% -3.20% 30.66% 7.71% 9.87% 1.29% 37.71% 23.07% 33.17% 28.58% 21.04% 35.34% 7.79% 27.44% 34.49% -14.02% 28.21% 3.40% -13.95% 21.72% 8.37% -27.08% 50.24% 27.84% 20.30% -3.34% 33.21% 16.50% 22.36% -2.55% 21.26% 5.226% 5.936% 14.890% 17.103% 2.980% 9.493% 16.695% 29.043% Note: Sources for annual returns are the Center for Research on Security Prices, Standard &Poor's 500 index, Russell 2000 index, and Solomon-Smith Barney U.S. Treasury bill index