Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the table below to calculate the average return over the years 2 0 0 6 - 2 0 1 0 for ordinary shares and

Use the table below to calculate the average return over the years 2006-2010 for ordinary shares and long-term government bonds. (5)
Table 1. Year on year total returns: 2006-2010
\table[[Year,Ordinary shares,\table[[Long-term],[Government],[bonds]],\table[[Money market],[index]],\table[[Consumer],[price index]]],[2006,40,9,5,6,7,9,5,8],[2007,18,9,4,3,10,0,9,0],[2008,-23,4,17,5,12,4,9,5],[2009,33,5,-1,0,9,1,6,3],[2010,18,7,15,3,6,9,3,5]]
Calculate the standard deviations using information from problem 1. Which of the investments was the most volatile over the period? (10)
image text in transcribed

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_2

Step: 3

blur-text-image_3

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

Advanced Financial Risk Management Enterprise Wide Risk Management In Theory And Practice

Authors: Donald Van Deventer, Kenji Imai, Mark Mesler

3rd Edition

1547416157, 9781547416158

More Books

Students also viewed these Finance questions

Question

Show the products of thesereactions: CH NaOH Br2 Bra b) a) . .

Answered: 1 week ago

Question

Briefly explain how the professional fees must be accounted for

Answered: 1 week ago