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Solve clearly Do bonds reduce the overall risk of an investment portfolio? Let X be a random variable representing annual percent return for Vanguard Total
Solve clearly
Do bonds reduce the overall risk of an investment portfolio? Let X be a random variable representing annual percent return for Vanguard Total Stock Index [all stocks]. Let y'oe a random variable representing annual return for Vanguard Balanced index [60% stock and 40% bond}. For the past several years, we have the following data. x. 15 O 31 13 35 2? 33 13 y. 23 ? 15 23 13 16 24 2 Formulas for this problem: Formulas for Chapter 3 Homeworkpdf (1} Compute Z X. 2 X2. E y. E y2. (2} Use the results of part {1] to compute the sample mean. variance, and standard deviation for X and for y. {Round your answers to two decimal places.) [3} Compute the coefficient of variation for each fund. [Round your answers to one decimal place.) X y cvxzsa cvyzssStep by Step Solution
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