Question
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 | 14 % | 20 % |
| 2 | 32 | 41 |
| 3 | 21 | -12 |
| 4 | -22 | -26 |
| 5 | 23 | 49 |
| Requirement 1: | |
| (a) | Calculate the average return for X. |
| (Click to select) 11.02% 17.00% 16.59% 15.37% 13.60% | |
| (b) | Calculate the average return for Y. |
| (Click to select) 11.66% 14.40% 17.57% 16.27% 18.00% |
| Requirement 2: | |
| (a) | Calculate the variance for X. (Do not round intermediate calculations.) |
| (Click to select) 0.054663 0.043726 0.043730 0.054658 0.035421 | |
| (b) | Calculate the variance for Y. (Do not round intermediate calculations.) |
| (Click to select) 0.106630 0.133287 0.086370 0.118881 0.095105 |
| Requirement 3: | |
| (a) | Calculate the standard deviation for X. (Do not round intermediate calculations.) |
| (Click to select) 16.94% 23.38% 26.14% 20.91% 20.81% | |
| (b) | Calculate the standard deviation for Y. (Do not round intermediate calculations.) |
| (Click to select) 30.84% 34.48% 40.82% 26.45% 32.65% |
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
978-1259277160
