Question: Which has the highest return on investmentthe S&P 500, high-grade corporate bonds, or U.S. Treasury bonds? Download the Investment Returns data set in Excel. The
Which has the highest return on investmentthe S&P 500, high-grade corporate bonds, or U.S. Treasury bonds? Download the Investment Returns data set in Excel. The source is Aswath Damodaran, NYU Finance Professor, at https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html. Required: Calculate the average returns for the S&P 500 stock index, high-grade corporate bonds, and U.S. Treasury bonds from 1928 to 2020. Which has the highest return? Calculate the standard deviation of returns to the S&P 500 stock index, high-grade corporate bonds, and U.S. Treasury bonds from 1928 to 2020. Which has the highest standard deviation of returns? (Hint: Use the STDEV.S Excel function for each index. STDEV.S calculates the standard deviation for a sample.) Generally we expect that the higher the risk, the greater the expected return. Which of these three investments has the highest risk (measured here as standard deviation of returns), and which has the greatest return
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