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The table below shows annual returns for stocks of companies X and Y. Calculate the arithmetic average returns. In addition, calculate their variances, as well
The table below shows annual returns for stocks of companies X and Y. Calculate the arithmetic average returns. In addition, calculate their variances, as well as their standard deviations. |
Returns | ||
Year | X | Y |
1 | 14 % | 22 % |
2 | 32 | 43 |
3 | 21 | -11 |
4 | -22 | -25 |
5 | 23 | 51 |
Requirement 1: | |
(a) | The arithmetic average return of company X's stock is: |
(Click to select) 15.37% 17.00% 16.59% 13.60% 11.02% |
(b) | The arithmetic average return of company Y's stock is: |
(Click to select) 20.00% 19.52% 12.96% 16.00% 18.08% |
Requirement 2: | |
(a) | The variance of company X's stock returns is: (Do not round intermediate calculations.) |
(Click to select) 0.043730 0.054658 0.035421 0.043726 0.054663 |
(b) | The variance of company Y's stock returns is: (Do not round intermediate calculations.) |
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