Question

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.)

Answer #1

Return (X ) | Return (Y) | (X -Average Return of X)^2 | (Y -Average Return of Y)^2 | ||

Year 1 | 11 | 23 | 19.36 | 112.36 | |

Year 2 | 15 | 26 | 70.56 | 184.96 | |

Year 3 | 10 | 11 | 11.56 | 1.96 | |

Year 4 | -13 | -14 | 384.16 | 696.96 | |

Year 5 | 10 | 16 | 11.56 | 12.96 | |

Total | 33 | 62 | 497.20 | 1009.20 | |

Average Return = | Total Return / NO of years | ||||

33 / 5 | 62 / 5 | ||||

6.60 | 12.40 | ||||

Variance = | [((X -Average Return of X)^2) / n ] | [((Y -Average Return of Y)^2) / n ] | |||

497.2 / 5 | 1009.2 / 5 | ||||

99.44000 | 201.84000 | ||||

Standard Deviation = | Square root of [((X -Average Return of X)^2) / n ] | Square root of [((Y -Average Return of Y)^2) / n ] | |||

Square root of (497.2/5) | Square root of (1009.2/5) | ||||

9.97 | 14.21 |

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...

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
21.8
%
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...

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 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...

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
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...

You’ve observed the following returns on Yasmin Corporation’s
stock over the past five years: 19 percent, –13 percent, 16
percent, 21 percent, and 10 percent.
a. What was the arithmetic average return on the
company's stock over this five-year period? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 1 decimal place, e.g., 32.1.)
Average return
{C} {C}{C} %
b-1 What was the variance of the company's stock
returns over this period? (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 %
25 %
2
32
46
3
21
-8
4
-22
-22
5
23
54
Requirement 1: (a) Calculate the arithmetic average return for
X. (b) Calculate the arithmetic average return for Y. Requirement
2: (a) Calculate the variance for X. (Do not round intermediate...

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