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

8.1long dashYear-by-Year

Returns, 1950-1999.

What is the variance of U.S. Treasury bills for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989?

The variance of U.S. Treasury bills for 1950 to 1959 is

0.00554______%.

(Round to five decimal places.)

The variance of U.S. Treasury bills for 1960 to 1969 is _____

%.

(Round to five decimal places.)

The variance of U.S. Treasury bills for 1970 to 1979 is

0.03809____%.

(Round to five decimal places.)

The variance of U.S. Treasury bills for 1980 to 1989 is

0.08285_____%.

(Round to five decimal places.)

What is the standard deviation of U.S. Treasury bills for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989?

The standard deviation of U.S. Treasury bills for 1950 to 1959 is

0.744____%.

(Round to three decimal places.)

The standard deviation of U.S. Treasury bills for 1960 to 1969 is

____%.

(Round to three decimal places.)

The standard deviation of U.S. Treasury bills for 1970 to 1979 is

1.952%.

(Round to three decimal places.)

The standard deviation of U.S. Treasury bills for 1980 to 1989 is

2.878%.

(Round to three decimal places.)

What is the variance of long-term government bonds for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989?

The variance of long-term government bonds for 1950 to 1959 is

0.21066 %.

(Round to five decimal places.)

The variance of long-term government bonds for 1960 to 1969 is

0.39149 %.

(Round to five decimal places.)

The variance of long-term government bonds for 1970 to 1979 is

0.40207 %.

(Round to five decimal places.)

The variance of long-term government bonds for 1980 to 1989 is

%.

(Round to five decimal places.)

What is the standard deviation of long-term government bonds for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989?

The standard deviation of long-term government bonds for 1950 to 1959 is

%.

(Round to three decimal places.)

The standard deviation of long-term government bonds for 1960 to 1969 is

6.257 %.

(Round to three decimal places.)

The standard deviation of long-term government bonds for 1970 to 1979 is

6.341 %.

(Round to three decimal places.)

The standard deviation of long-term government bonds for 1980 to 1989 is

11.175 %.

(Round to three decimal places.)

Calculate the variance of small-company stocks for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989?

The variance of small-company stocks for 1950 to 1959 is

8.67926 %.

(Round to five decimal places.)

The variance of small-company stocks for 1960 to 1969 is

15.38544 %.

(Round to five decimal places.)

The variance of small-company stocks for 1970 to 1979 is

13.15023 %.

(Round to five decimal places.)

The variance of small-company stocks for 1980 to 1989 is

3.40688 %.

(Round to five decimal places.)

Calculate the standard deviation of small-company stocks for 1950 to 1959, 1960 to 1969, 1970 to 1979, and 1980 to 1989?

The standard deviation of small-company stocks for 1950 to 1959 is

29.461 %.

(Round to three decimal places.)

The standard deviation of small-company stocks for 1960 to 1969 is

39.224 %.

(Round to three decimal places.)

The standard deviation of small-company stocks for 1970 to 1979 is

36.263 %.

(Round to three decimal places.)

The standard deviation of small-company stocks for 1980 to 1989 is

18.458 %.

(Round to three decimal places.)

Which investment had the highest variance?(Select the best response.)

*** HERE IS THE DATA NEEDED***

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