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 % 24 %
2 24 45
3 13 -14
4 -14 -28
5 15 53

Requirement 1:
(a) Calculate the arithmetic average return for X.
(Click to select)7.13%8.80%11.00%9.94%10.74%

(b) Calculate the arithmetic average return for Y.
(Click to select)12.96%16.00%18.08%19.52%20.00%

Requirement 2:
(a) Calculate the variance for X. (Do not round intermediate calculations.)
(Click to select)0.0199560.0165000.0203700.0249450.025462

(b) Calculate the variance for Y. (Do not round intermediate calculations.)
(Click to select)0.1596880.1034780.1277500.1143000.142875

Requirement 3:
(a)

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

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

(b)

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

(Click to select)44.68%35.74%33.81%37.80%28.95%

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

Digital Finance Big Data Start-ups And The Future Of Financial Services

Authors: Perry Beaumont

1st Edition

0367146797, 978-0367146795

More Books

Students also viewed these Finance questions

Question

2. Are they aware of the assumptions they are making?

Answered: 1 week ago