Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Problem 8-05 Two investments generated the following annual returns: Investment X Investment Y 20x0 14 % 19 % 20X1 16 28 20X2 30 15 20X3

image text in transcribed
Problem 8-05 Two investments generated the following annual returns: Investment X Investment Y 20x0 14 % 19 % 20X1 16 28 20X2 30 15 20X3 15 9 20X4 10 8 8 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- v was riskier

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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