Question
During the past 10 years, the percent returns on two mutual funds (aggressive and passive) expressed in percentages were as follows: Year Aggressive Fund Passive
During the past 10 years, the percent returns on two mutual funds (aggressive and passive) expressed in percentages were as follows:
Year | Aggressive Fund | Passive Fund |
-10 | 0% | 4% |
-9 | 6% | 4% |
-8 | 0% | 4% |
-7 | 1% | 2% |
-6 | 7% | 2% |
-5 | 2% | 4% |
-4 | 9% | 2% |
-3 | 2% | 3% |
-2 | 0% | 3% |
Last Year | 3% | 4% |
Note that this is a sample of returns.
a) Compute the expected return for the two funds. Round your answers to two decimal places.
Aggressive =
Passive =
b) Compute the variance and standard deviation of the returns of the two funds. Round your answers to two decimal places.
Variance:
Aggressive =
Passive =
Standard Deviation:
Aggressive = %
Passive = %
Step by Step Solution
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Step: 1
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Calculus Early Transcendentals
Authors: James Stewart
8th edition
1285741552, 9781305482463 , 978-1285741550
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