Step 1. Chain built: 1,194 months; one dollar grows to 17488 dollars nominal
Step 2. Decade 2000 to 2009: arithmetic mean +0.085 percent a month; geometric mean -0.032 percent a month; total return -3.74 percent; CAGR -0.38 percent a year; drag 11.7 basis points a month
Step 3. Maximum drawdown, 2007 to 2009: -50.31 percent; peak 2007-10; trough 2009-02
        Maximum drawdown, full series: -83.65 percent; peak 1929-08; trough 1932-06
Step 4. Recovery table, gain required g = L / (1 - L):
        loss    5 percent -> gain    5.3 percent
        loss   10 percent -> gain   11.1 percent
        loss   20 percent -> gain   25.0 percent
        loss   25 percent -> gain   33.3 percent
        loss   30 percent -> gain   42.9 percent
        loss   40 percent -> gain   66.7 percent
        loss   50 percent -> gain  100.0 percent
        loss   60 percent -> gain  150.0 percent
        loss   75 percent -> gain  300.0 percent
        loss   80 percent -> gain  400.0 percent
        loss   90 percent -> gain  900.0 percent
Step 5. Full series: nominal CAGR 10.32 percent a year; real CAGR 7.10 percent a year; ending wealth 17488 dollars nominal, 916 dollars real; mean monthly inflation 0.25 percent
Step 6. One dollar, 1996 to 2025: 19.54 dollars before fees; 14.51 dollars after a fee of one percent a year charged as a negative return of 0.01/12 a month; the fee removes 25.77 percent of the ending wealth

Part B, R lane solution: the decade table
        Window        arith %/mo   geo %/mo   drag bp/mo   half-var bp/mo   CAGR %/yr
        1926 to 1929    +1.4679    +1.3014       16.6       16.3     +16.78
        1930s           +0.5007    -0.0219       52.3       54.3      -0.26
        1940s           +0.8608    +0.7584       10.2       10.0      +9.49
        1950s           +1.4643    +1.4134        5.1        5.2     +18.34
        1960s           +0.7293    +0.6634        6.6        6.6      +8.26
        1970s           +0.6098    +0.4915       11.8       12.0      +6.06
        1980s           +1.4261    +1.3077       11.8       11.7     +16.87
        1990s           +1.4676    +1.3883        7.9        7.9     +17.99
        2000s           +0.0848    -0.0317       11.7       11.5      -0.38
        2010s           +1.1376    +1.0683        6.9        7.0     +13.60
        2020 to 2025    +1.2885    +1.1581       13.0       13.2     +14.82
        Full series     +0.9616    +0.8216       14.0       14.0     +10.32

Chapter 4 lab complete.
