Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 8-05 Two investments generated the following annual returns: 20x0 20x1 20x2 20x3 20x4 Investment 15 % 19 20 19 10 Investment Y 18 %

image text in transcribed
Problem 8-05 Two investments generated the following annual returns: 20x0 20x1 20x2 20x3 20x4 Investment 15 % 19 20 19 10 Investment Y 18 % 22 15 11 22 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: % 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 riskier? -Select- 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

Students also viewed these Finance questions