Use the following returns for X and Y.     Returns   Year x y 1 21.8% 26.4% 2 -16.8 -3.8 3 9.8 28.4 4 19.6 -14.6 5 4.8 32.4     a. Calculate the average returns for X and Y. (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. (Do not round intermediate calculations and round your answers to 6 decimal places, e.g., 32.161616.) c. Calculate the standard deviations for X and Y. (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
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Use the following returns for X and Y.
 
  Returns  
Year x y
1 21.8% 26.4%
2 -16.8 -3.8
3 9.8 28.4
4 19.6 -14.6
5 4.8 32.4
   
a. Calculate the average returns for X and Y(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(Do not round intermediate calculations and round your answers to 6 decimal places, e.g., 32.161616.)
c. Calculate the standard deviations for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Expert Solution
Step 1

Average return refers to the mean value of returns that an asset has provided over past years and same is used to ascertain variance and standard deviation to know the riskiness of investment.

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