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. What is the variance of U.S. Treasury bills for 1980 to 1989? The variance of U.S. Treasury bills for 1980 to 1989 is %. (Round to five decimal places.) What is the standard deviation of U.S. Treasury bills for 1980 to 1989? The standard deviation of U.S. Treasury bills for 1980 to 1989 is % (Round to three decimal places.) What is the variance of long-term government bonds for 1960 to 1989? The variance of long-term goverment bonds for 1980 to 1989 is % (Round to five decimal places.) What is the standard deviation of long-term government bonds for 1980 to 1989? The standard deviation of long-term government bonds for 1980 to 1989 is %. (Round to three decimal places.) Calculate the variance of small-company stocks for 1980 to 1989? The variance of small-company stocks for 1980 to 1989 is (Round to five decimal places.) Calculate the standard deviation of small-company stocks for 1980 to 1989? The standard deviation of small-company stocks for 1980 to 1989 is %. (Round to three decimal places.) Table 8.1 AESU Home Insert Drav Page Layout Formulas Data Review View Tell me Share Comments Wraa Text === = E Merge & Center Insert Delete Format ZY Sort Find & 7 Ideas Conditional Format Cell BIUBA Open recovered workbook F J L M N o P R UN Table 8.1 Year-by-Year Returns, 1950-1999 Government Large company Slocks ISS 0.10 . || || | RISSE NUSANNSSON NOYO - AutoSava OFF OEU Table 81 Insert Draw Page Layout Formulas Data Review Home - View Tell me Share Comments X X Arial ~ Al A 10 a Wras Text E49 Insert v v Ceneral AYO DX Delete v Paste BI U A Y Merge & Center Conditional Format Cell Formatting as Table Styles Ideas Sensitivity Sort Filter Format v Find Select v Open recovered workbooke? Your recent changes were saved. Do you want to continue working where you left oft? Yes No 114 A B C D E F G H 1 J L L M M N o P a R 27 28 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 50-year average Standard Devlation 3.81% 6.91% 7.93% 5.80% 5.06% 5.10% 7.15% 10.45% 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% 5.226% 5.55% 1.40% 5.53% 8.50% 11.07% 0.90% 4.16% 9.02% 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% 5.936%. 19.14% -14.75% 26.40% 37.26% 23.95% -7.26% 6.50% 18.77% 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% 14.890% -0.62% 40.54% -29.74% 69.54% 54.81% 22.02% 22.29% 43.99% 35.34% 7.79% 27.44% 34.49% -14.02% 28.21% 3.40% -13.95% 21.72% 8.37% -27.08% 50.24% 27.14% 20.30% 3.34% 33.21% 16.50% 22.36% -2.55% 21.26% 17.103% 2.980% 9.493% 16.695% 29.043% Note: Sources for annual retums are the Center for Research on Security Prices, Standard & Poor's 500 index, Russell 2000 index, and Solomon-Smith Bamcy U.S. Treasury bill index. 58 59 60 61 Table 8.1 Year-by-Year Returns -- + + 12554