Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. |
Returns | ||
Year | X | Y |
1 | 11 % | 25 % |
2 | 29 | 46 |
3 | 18 | -7 |
4 | -19 | -21 |
5 | 20 | 54 |
Requirement 1: | |
(a) | Calculate the arithmetic average return for X. |
9.56% 14.75% 14.40% 13.33% 11.80% |
(b) | Calculate the arithmetic average return for Y. |
15.71% 24.25% 21.92% 23.67% 19.40% |
Requirement 2: | |
(a) | Calculate the variance for X. (Do not round intermediate calculations.) |
0.033770 0.041997 0.033597 0.042213 0.027354 |
(b) | Calculate the variance for Y. (Do not round intermediate calculations.) |
0.086370 0.133287 0.128866 0.103093 0.106630 |
Requirement 3: | |
(a) |
Calculate the standard deviation for X. (Do not round intermediate calculations.) |
18.38% 14.89% 20.49% 22.97% 18.23% |
(b) |
Calculate the standard deviation for Y. (Do not round intermediate calculations.) |
32.11% 40.82% 35.90% 32.65% 26.45% |
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