2(b)

3(a)

4(b)

The table below shows historical annual returns for stocks of companies X and Y over recent years. Calculate the arithmetic average returns. In addition, calculate their historical variances, as well as their historical standard deviations. Year 1 2 3 4 5 Returns Y 7% 19 % 25 40 14 -13 -15 -27 16 48 Requirement 1: (a)The arithmetic average return of company X's stock is: 9.40% (b)The arithmetic average return of company Y's stock is: 13.40% Requirement 2: The historical variance of company X's stock returns is: (Do not round intermediate (a) calculations.) (Click to select) (Click to select) (b) 0.028412 riance of company Y's stock returns is: (Do not round intermediate 0.022360 0.018411 0.027950 0.022730 Requirement 3: The historical standard deviation of company X's stock returns is: (Do not round "intermediate calculations.) 12.21% (b), The historical standard deviation of company Y's stock returns is: (Do not round "intermediate calculations.) 30.63% Variatic (b) 'calculations.) (Click to select) (Click to select) Re 0.093791 (a) 0.133287 0.117239 0.106630 0.086370 .and culc The historical sta (a) 'intermediate cale