Question
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 9
| Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. |
| Returns | ||
| Year | X | Y |
| 1 | 9 % | 25 % |
| 2 | 27 | 46 |
| 3 | 16 | -7 |
| 4 | -17 | -21 |
| 5 | 18 | 54 |
| Requirement 1: | |
| (a) | Calculate the arithmetic average return for X. |
| (b) | Calculate the arithmetic average return for Y. |
| Requirement 2: | |
| (a) | Calculate the variance for X.(Do not round intermediate calculations.) |
| (b) | Calculate the variance for Y.(Do not round intermediate calculations.) |
| Requirement 3: | |
| (a) | Calculate the standard deviation for X.(Do not round intermediate calculations.) |
| (b) | Calculate the standard deviation for Y.(Do not round intermediate calculations.) |
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
