Question
Two investments generated the following annual returns: Investment X Investment Y 20X0 12 % 16 % 20X1 21 26 20X2 16 12 20X3 18 25
Two investments generated the following annual returns:
| Investment X | Investment Y | |||
| 20X0 | 12 | % | 16 | % |
| 20X1 | 21 | 26 | ||
| 20X2 | 16 | 12 | ||
| 20X3 | 18 | 25 | ||
| 20X4 | 11 | 16 | ||
What is the average annual return on each investment? Round your answers to one decimal place.
The average annual rate of return on X: %
The average annual rate of return on Y: %
What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places.
Standard deviation of X:
Standard deviation of Y:
Based on the standard deviation, which investment was riskier?
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
The Financial Services Marketing Handbook
Authors: Evelyn Ehrlich
2nd Edition
1118065719, 978-1118065716
