Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started