Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8-0 Two investments generated the following annual returns: Investment X Investment Y 20X0 10% 20X1 16 20X2 24 20X3 21 20X4 9 22392 24%

image text in transcribed

8-0 Two investments generated the following annual returns: Investment X Investment Y 20X0 10% 20X1 16 20X2 24 20X3 21 20X4 9 22392 24% 26 13 a. What is the average annual return on each investment? Round your answers to one decimal place. The average annual rate of return on X: The average annual rate of return on Y: 16 % 18.8 % b. What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places. Standard deviation of X: Standard deviation of Y: * * c. Based on the standard deviation, which investment was riskler? Investment Y 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_2

Step: 3

blur-text-image_3

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

Financial Accounting in an Economic Context

Authors: Jamie Pratt

9th edition

9781118803035, 1118582551, 1118803035, 978-1118582558

More Books

Students also viewed these Accounting questions

Question

Solve the following 1,4 3 2TT 5x- 1+ (15 x) dx 5X

Answered: 1 week ago