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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 | 12 % | 21 % |
2 | 30 | 42 |
3 | 19 | -11 |
4 | -20 | -25 |
5 | 21 | 50 |
Requirement 1: | |
(a) | The arithmetic average return of company X's stock is: |
(Click to select) 15.13% 12.40% 14.01% 10.04% 15.50% |
(b) | The arithmetic average return of company Y's stock is: |
(Click to select) 19.25% 17.40% 12.47% 18.79% 15.40% |
Requirement 2: | |
(a) | The variance of company X's stock returns is: (Do not round intermediate calculations.) |
(Click to select) 0.029913 0.036930 0.046014 0.036812 0.046163 |
(b) | The variance of company Y's stock returns is: (Do not round intermediate calculations.) |
(Click to select) 0.133287 0.106630 0.120642 0.096514 0.086370 |
Requirement 3: | |
(a) | The standard deviation of company X's stock returns is: (Do not round intermediate calculations.) |
(Click to select) 21.45% 15.57% 19.22% 24.02% 19.09% |
(b) | The standard deviation of company Y's stock returns is: (Do not round intermediate calculations.) |
(Click to select) 34.73% 32.65% 26.45% 40.82% 31.07% |
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