Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 15% 2 3 4 5 20% 41 -10 24 49 -23 24 Requirement 1: (a)The arithmetic average return of company X's stock is (Click to select (b)The arithmetic average return of company Y's stock is (Click to select) Requirement 2: The variance of company X's stock returns is: (Do not round intermediate calculations.) (Click to select) The variance of company Y's stock returns is: (Do not round intermediate calculations.) (Click to select) Requirement 3: The standard deviation of company X's stock returns is: (Do not round intermediate calculations.) (Click to select) The standard deviation of company Y's stock returns is: (Do not round intermediate calculations.) (Click to select)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Authors: Gary E. Gibbons, Robert D. Hisrich, Carlos Marques DaSilva

1st Edition

1452274177, 978-1452274171

More Books

Students also viewed these Finance questions

Question

Describe the nature of negative messages.

Answered: 1 week ago