Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Using the following returns, calculate the average returns, the variances, and the standard deviations for X and Y. (Note that the book covers both the
Using the following returns, calculate the average returns, the variances, and the standard deviations for X and Y. (Note that the book covers both the "arithmetic" and the "geometric" averages. Here, calculate the regular "arithmetic" average returns. These are the average returns covered in the course lecture. |
Returns | ||
Year | X | Y |
1 | 11 % | 18 % |
2 | 29 | 39 |
3 | 18 | -12 |
4 | -19 | -26 |
5 | 20 | 47 |
Requirement 1: | |
(a) | Calculate the average return for X. |
(Click to select) 14.40% 9.56% 14.75% 11.80% 13.33% |
(b) | Calculate the average return for Y. |
(Click to select) 16.50% 16.10% 10.69% 13.20% 14.92% |
Requirement 2: | |
(a) | Calculate the variance for X. (Do not round intermediate calculations.) |
(Click to select) 0.042213 0.033597 0.027354 0.041997 0.033770 |
(b) | Calculate the variance for Y. (Do not round intermediate calculations.) |
(Click to select) 0.081057 0.088292 0.100070 0.125088 0.110364 |
Requirement 3: | |
(a) | Calculate the standard deviation for X. (Do not round intermediate calculations.) |
(Click to select) 18.23% 22.97% 14.89% 18.38% 20.49% |
(b) | Calculate the standard deviation for Y. (Do not round intermediate calculations.) |
(Click to select) 29.71% 25.62% 39.54% 33.22% 31.63% |
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