Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculating average return, variance, and standard deviation with historical data. Year 2014 2015 2016 | 2017 Large Company Stocks 0.2646 0.1506 0.0211 0.1600 Long-Term Government

image text in transcribed

Calculating average return, variance, and standard deviation with historical data. Year 2014 2015 2016 | 2017 Large Company Stocks 0.2646 0.1506 0.0211 0.1600 Long-Term Government Bonds -0.2561 0.0773 0.3575 0.0180 Average Returns: Large-company stocks: Long-term government bonds: Calculate variances: VAR(R) = 0 = IR. -} N-1 Variance of large-company stocks: Variance of long-term government bonds: Calculate standard deviation: SD(R)== /VAR(R) Standard deviation of large-company stocks: Standard deviation of long-term government bonds

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

Pricing And Hedging Financial Derivatives A Guide For Practitioners

Authors: Leonardo Marroni, Irene Perdomo

1st Edition

1119953715, 978-1119953715

More Books

Students also viewed these Finance questions

Question

Critique the town of Greensburgs approach to the 100 year decision.

Answered: 1 week ago

Question

6. Are my sources reliable?

Answered: 1 week ago

Question

5. Are my sources compelling?

Answered: 1 week ago