Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 6

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.

Returns
Year X Y
1 6 % 23 %
2 24 44
3 13 -7
4 -14 -21
5 15 52
Requirement 1:
(a) Calculate the arithmetic average return for X.
(Click to select)8.80%10.74%11.00%7.13%9.94%
(b) Calculate the arithmetic average return for Y.
(Click to select)22.75%20.57%22.20%18.20%14.74%

Requirement 2:
(a) Calculate the variance for X.(Do not round intermediate calculations.)
(Click to select)0.0165000.0199560.0249450.0254620.020370
(b) Calculate the variance for Y.(Do not round intermediate calculations.)
(Click to select)0.0810570.1250880.0957120.1196400.100070

Requirement 3:
(a)

Calculate the standard deviation for X.(Do not round intermediate calculations.)

(Click to select)14.27%17.84%11.56%14.03%15.79%
(b)

Calculate the standard deviation for Y.(Do not round intermediate calculations.)

(Click to select)31.63%34.59%39.54%30.94%25.62%

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

Contemporary Financial Management

Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao

14th edition

1337090581, 978-1337090582

More Books

Students also viewed these Finance questions