Question

Problem 12-7 Calculating Returns and Variability [LO1]

Returns | |||||||

Year | X | Y | |||||

1 | 12 | % | 23 | % | |||

2 | 15 | 27 | |||||

3 | 11 | 11 | |||||

4 | – | 12 | – | 13 | |||

5 | 10 | 17 | |||||

Using the returns
shown above, calculate the arithmetic average returns, the
variances, and the standard deviations for X and Y. |

X | Y | |

Average return | % | % |

Variance | ||

Standard deviation | % | % |

Answer #1

Returns
Year
X
Y
1
17
%
22
%
2
31
32
3
12
16
4
–
24
–
29
5
10
23
Using the returns shown above, calculate the arithmetic average
returns, the variances, and the standard deviations for X and Y.
Fill in the table below. (Do not round intermediate
calculations. Enter your average return and standard deviation as a
percent rounded to 2 decimal places, e.g., 32.16, and round the
variance to 5 decimal places, e.g., .16161.)...

Use the following returns for X and Y.
Returns
Year
X
Y
1
21.5
%
25.5
%
2
–
16.5
–3.5
3
9.5
27.5
4
19.0
–14.0
5
4.5
31.5
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.)
Average returns
X
%
Y
%
Calculate the variances for X and Y. (Do not round intermediate
calculations and round your answers...

Use the following returns for X and
Y.
Returns
Year
X
Y
1
21.7
%
26.1
%
2
–
16.7
–3.7
3
9.7
28.1
4
19.4
–14.4
5
4.7
32.1
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.)
Average returns
X
% 7.76
Y
% 13.64
Calculate the variances for X and Y. (Do
not round intermediate calculations and round...

Problem 13-10 Returns
and Standard Deviations [LO1]
Consider the
following information:
Rate of Return If State Occurs
State of
Probability of
Economy
State of Economy
Stock A
Stock B
Stock C
Boom
.20
.38
.48
.28
Good
.50
.14
.19
.12
Poor
.20
−.05
−.08
−.06
Bust
.10
−.19
−.23
−.09
a.
Your portfolio is
invested 22 percent each in A and C, and 56 percent in B. What is
the expected return of the portfolio? (Do not...

Using the following returns, calculate the arithmetic average
returns, the variances, and the standard deviations for X and
Y.
Returns
Year
X
Y
1
14 %
20 %
2
32
41
3
21
-13
4
-22
-27
5
23
49
Calculate the arithmetic average return for X.
Calculate the arithmetic average return for Y.
Calculate the variance for X.
Calculate the variance for Y.
...

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 %
22 %
2
29
43
3
18
-7
4
-19
-21
5
20
51
Calculate the arithmetic average return for X.
Calculate the arithmetic average return for Y.
Calculate the variance for X.
Calculate the variance for Y.
...

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 %
23 %
2
29
44
3
18
-10
4
-19
-24
5
20
52
Calculate the arithmetic average return for X.
Calculate the arithmetic average return for Y.
Calculate the variance for X.
Calculate the variance for Y.
Calculate the standard deviation...

Using the following returns, calculate the arithmetic average
returns, the variances, and the standard deviations for X and
Y.
Returns
Year
X
Y
1
6 %
23 %
2
24
44
3
13
-7
4
-14
-21
5
15
52
Calculate the arithmetic average return for X.
Calculate the arithmetic average return for Y.
Calculate the variance for X.
Calculate the variance for Y.
...

Using the following returns, calculate the arithmetic average
returns, the variances, and the standard deviations for X and
Y.
Returns
Year X Y
1 10 % 18 %
2. 28 39
3 17 -7
4. -18 -21
5. 19 47
Calculate the arithmetic average return for X.
Calculate the arithmetic average return for Y.
Calculate the Variance for X
Calculate the variance for Y
Calculate the Standard Deviation for X
Calculate the standard deviation...

Problem 11-10 Returns and Standard Deviations [LO 1,
2]
Consider the following information:
State of
Probability of
Rate of Return If State Occurs
Economy
State of Economy
Stock A
Stock B
Stock C
Boom
.19
.360
.460
.340
Good
.41
.130
.110
.180
Poor
.31
.020
.030
?
.066
Bust
.09
?
.120
?
.260
?
.100
Your portfolio is invested 30 percent each in A and C and 40
percent in B. What is the expected return of the...

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