Question

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 your answers to 6
decimal places, e.g., 32.161616.)**

Variances |
||

X |
||

Y |
||

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.)
**

Standard deviations | ||

X | % 15.33 | |

Y | % 21.16 | |

Answer #1

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
21.8
%
26.4
%
2
–
16.8
–
3.8
3
9.8
28.4
4
19.6
–
14.6
5
4.8
32.4
Requirement 1:
Calculate the average returns for X and Y.
(Do not round intermediate calculations.
Enter your answers as a percentage rounded to 2
decimal places (e.g., 32.16).)
Average returns
X
%
Y
%
Requirement 2:
Calculate the variances for X and Y. (Do not...

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.)...

Returns
Year X Y
1 11 % 23 %
2 15 26
3 10 11
4 –13 –14
5 10 16
Using the returns shown above, calculate the arithmetic average
returns, the variances, and the standard deviations for X and Y.
(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.,
32.16161.)

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. (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...

You’ve observed the following returns on Yamauchi Corporation’s
stock over the past five years: –26.1 percent, 14.4 percent, 31.8
percent, 2.7 percent, and 21.7 percent. The average inflation rate
over this period was 3.27 percent and the average T-bill rate over
the period was 4.3 percent.
a. What was the average real risk-free rate over this time
period? (Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What was...

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.
Average returns
X
%
Y
%
Calculate the variances for X and Y.
Variances
X
Y
Calculate the standard deviations for X and Y.
Standard deviations
X
%
Y
%

Consider the following two
mutually exclusive projects:
Year
Cash Flow
(X)
Cash Flow
(Y)
0
–$
20,900
–$
20,900
1
9,075
10,550
2
9,550
8,025
3
9,025
8,925
Calculate the IRR for each project. (Do not round
intermediate calculations. Enter your answers as a percent rounded
to 2 decimal places, e.g., 32.16.)
IRR
Project X
%
Project Y
%
What is the crossover rate for these two projects? (Do
not round intermediate calculations. Enter your answer...

You’ve observed the following returns on Barnett Corporation’s
stock over the past five years: –27.3 percent, 15.2 percent, 33.4
percent, 3.1 percent, and 22.1 percent.
What was the arithmetic average return on the stock over this
five-year period? (Do not round intermediate calculations
and enter your answer as a percent rounded to 2 decimal places,
e.g., 32.16.)
Arithmetic average return % =
What was the variance of the returns over this period?
(Do not round intermediate calculations and round your...

Suppose we have the following Treasury bill returns and
inflation rates over an eight-year period:
Year
Treasury Bills
Inflation
1
10.45%
12.55%
2
11.36
16.00
3
9.06
10.29
4
8.34
7.97
5
8.88
10.29
6
11.23
12.77
7
14.11
16.98
8
15.97
16.90
a.
Calculate the average return for Treasury bills and the average
annual inflation rate...

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