Question
Risk. Suppose you are evaluating the risk of 10 year US Treasury bonds. The returns from the previous five years are listed below. Year 2016
Risk. Suppose you are evaluating the risk of 10 year US Treasury bonds. The returns from the previous five years are listed below.
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| 10Yr TBonds Return | 14.04% | 2.97% | 9.18% | 10.75% | 1.55% |
a. Calculate the average annual return, the variance of returns, and the volatility of returns. (6 points)
b. Calculate the range of values we can be 95% sure returns will fall within. (4 points)
Step by Step how to solve for it please.
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
16th Edition
78110939, 978-0078110931
