Use the following returns for X and Y. Year 1 2 -16.6 3 9.6 4 19.2 5 4.6 Returns X 21.6% 25.8% -3.6 27.8 -14.2 31.8 a. Calculate the average returns for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the variances for X and Y. Note: Do not round intermediate calculations and round your answers to 6 decimal places, e.g.. .161616. c. Calculate the standard deviations for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
Use the following returns for X and Y. Year 1 2 -16.6 3 9.6 4 19.2 5 4.6 Returns X 21.6% 25.8% -3.6 27.8 -14.2 31.8 a. Calculate the average returns for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the variances for X and Y. Note: Do not round intermediate calculations and round your answers to 6 decimal places, e.g.. .161616. c. Calculate the standard deviations for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Problem 10-7 Calculating Returns and Variability [LO 1]
Use the following returns for X and Y.
Year
1
2
3
4
5
Returns
21.6%
-16.6
9.6
19.2
4.6
Y
25.8%
-3.6
27.8
-14.2
31.8
a.
Calculate the average returns for X and Y.
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
b. Calculate the variances for X and Y.
Note: Do not round intermediate calculations and round your answers to 6 decimal places, e.g., .161616.
c. Calculate the standard deviations for X and Y.
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
a. Average return
b. Variance
c. Standard deviation.
X
%
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d999cf7-cd4b-4a88-9b76-bbc25e621044%2Fa5e6bb1e-7d96-48fb-a5b6-12cdbbd12e1e%2Fw5c4hs_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 10-7 Calculating Returns and Variability [LO 1]
Use the following returns for X and Y.
Year
1
2
3
4
5
Returns
21.6%
-16.6
9.6
19.2
4.6
Y
25.8%
-3.6
27.8
-14.2
31.8
a.
Calculate the average returns for X and Y.
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
b. Calculate the variances for X and Y.
Note: Do not round intermediate calculations and round your answers to 6 decimal places, e.g., .161616.
c. Calculate the standard deviations for X and Y.
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
a. Average return
b. Variance
c. Standard deviation.
X
%
%
%
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