Homework Help is Here – Start Your Trial Now!
Math
Statistics
TOUR FEACK Do bonds reduce the overal risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock tndes (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% band). For the past several years, we have the folwing data *: 36 0 13 24 22 32 2s -19 y 17 -9 24 18 10 9 9 -22 -19 -1 -7 -1 A USE SALT (0) Compute Dx, L, Ly, Xy. (b) Use the results of pert (a) to compute the sample mean, variance, and standard deviation for v and for y. (Round your answers to four deimal paces) () Compute the coefficient of variation for each fund. (Round your answers to the nearest whole number CV Use the coeficients of variation to compare the two funds. For each unit of return, the stock fund (x) has lower risk. Ofer each unit of return, the balanced fund (v) has lower rik For each unit of returm, the funds have equal sk. ir s regresents risks and represents expected returm, then s/x can be thought of as a measure of rsk per unit of expected retum, In this cane why is a smaler CV better Eglan A smaler CV is better because it indicates a higher risk per unit of expected return. A smaler CVis better because it indicates a lower risk per unit of expected return

TOUR FEACK Do bonds reduce the overal risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock tndes (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% band). For the past several years, we have the folwing data *: 36 0 13 24 22 32 2s -19 y 17 -9 24 18 10 9 9 -22 -19 -1 -7 -1 A USE SALT (0) Compute Dx, L, Ly, Xy. (b) Use the results of pert (a) to compute the sample mean, variance, and standard deviation for v and for y. (Round your answers to four deimal paces) () Compute the coefficient of variation for each fund. (Round your answers to the nearest whole number CV Use the coeficients of variation to compare the two funds. For each unit of return, the stock fund (x) has lower risk. Ofer each unit of return, the balanced fund (v) has lower rik For each unit of returm, the funds have equal sk. ir s regresents risks and represents expected returm, then s/x can be thought of as a measure of rsk per unit of expected retum, In this cane why is a smaler CV better Eglan A smaler CV is better because it indicates a higher risk per unit of expected return. A smaler CVis better because it indicates a lower risk per unit of expected return

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question
ASA TUURIEACE Do bonds reduce the overal risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. *: 36 0 13 24 22 32 2s -19 -22 -19 y: 17 -9 24 18 10 9 9 -1 -7 -1 A USE SALT (a) Compute Ex, Le, Ey, Sy. (b) Use the results of part (a) to compute the sample mean, variance, and standard deviation forx and for y. (Round your answers to four decimal paces) (c) Compute the coefficient of variation for each fund. (Round your answers to the nearest whole number) Use the coefcients of variation to compare the two funds. For each unit of return, the stock und (x) has lower nisk. For each unit of return, the balanced fund (v) has lower rik For each unit of retum, the funds have equal risk. ars represents risks andxrepresents expected retum, then s/K can be thought of as a measure of nsk per unit of expected retum, In this cane, why is a smaller CV better Exglan A smaller CV is better because t indicates a higher risk per unit of expected return. A smaller CV is better because it indicates a lower risk per unit of expected return
Transcribed Image Text:ASA TUURIEACE Do bonds reduce the overal risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. *: 36 0 13 24 22 32 2s -19 -22 -19 y: 17 -9 24 18 10 9 9 -1 -7 -1 A USE SALT (a) Compute Ex, Le, Ey, Sy. (b) Use the results of part (a) to compute the sample mean, variance, and standard deviation forx and for y. (Round your answers to four decimal paces) (c) Compute the coefficient of variation for each fund. (Round your answers to the nearest whole number) Use the coefcients of variation to compare the two funds. For each unit of return, the stock und (x) has lower nisk. For each unit of return, the balanced fund (v) has lower rik For each unit of retum, the funds have equal risk. ars represents risks andxrepresents expected retum, then s/K can be thought of as a measure of nsk per unit of expected retum, In this cane, why is a smaller CV better Exglan A smaller CV is better because t indicates a higher risk per unit of expected return. A smaller CV is better because it indicates a lower risk per unit of expected return
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS