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Table 9.2 Average Retuns for Bonds 0.0% 1950 to 1959 Average 1960 to 1969 Average 1970 to 1979 Average54 1980 to 1989 Average1 1990 to 1999 Average9.5 2000 to 2009 Average 1.8 13.5 8.7 Table 9.4 Annual Standard Deviation for Bonds Bonds 1950 to 1959: 4.6% 1960 to 1969 6.5 1970 to 1979 6.9 1980 to 1989 15.4 1990 to 1999 12.7 2000 to 2009 10.4 - Use the tables above to calculate the coefficient of varia market during each decade since 1950. (Round your answ Decade 1960s 1970s 1980s 2000

use the tables to calculate the coefficient to variation of the risk-return relationship of the bond market during each decade since 1950. (round your answer to 2 decimals).

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Answer #1

coefficient to variation shows the relationship between risk and return. coefficient to variation is calculated by following formula:

coefficient to variation = Standard deviation / Mean return

Using above formula, coefficient to variation for each decades is calculated in excel and screen shot provided below:

D3 1 Year 2 1950-1959 3 1960-1969 4 1970-1979 5 1980-1989 6 1990-1999 7 2000-2009 mean Return tandard deviatid coefficient of

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