Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. Two investments generated the following annual returns: Investment X Investment Y 2010 10% 16% 2011 20% 18% 2012 30% 15% 2013 20% 20% 2014

5. Two investments generated the following annual returns:
Investment X Investment Y
2010 10% 16%
2011 20% 18%
2012 30% 15%
2013 20% 20%
2014 10% 21%
(a) What is the average annual return on each investment?
(b) What is the standard deviation of the return on investments X and Y?
(c) Based on the standard deviation, which investment was riskier?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foreign Direct Investment Smart Approaches To Differentiation And Engagement

Authors: Daniel Nicholls

1st Edition

1409423573,1409471381

More Books

Students also viewed these Finance questions

Question

What is meant by the long run in production?

Answered: 1 week ago