Question 14

Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute the coefficient of variation for each fund. Round your answers to the nearest tenth.

x:	15	0	39	23	35	25	26	-15	-15	-18
y:	10	-2	26	18	24	16	18	-2	-3	-10

Group of answer choices

for x-values: 111.1%, and for y-values: 134.5%

for x-values: 189.0%, and for y-values: 134.5%

for x-values: 111.1%, and for y-values: 228.8%

for x-values: 134.5,% and for y-values: 189.0%