The table below shows annual returns for stocks of companies X and Y. Calculate the arithmetic average returns. In addition, calculate their variances, as well as their standard deviations. |
PLEASE SHOW ALL STEPS AND I WILL RATE! THANK YOU
Returns | ||
Year | X | Y |
1 | 12 % | 24 % |
2 | 30 | 45 |
3 | 19 | -10 |
4 | -20 | -24 |
5 | 21 | 53 |
Requirement 1: | |
(a) | The arithmetic average return of company X's stock is: |
(Click to select)14.01%15.13%10.04%12.40%15.50% |
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(b) |
The arithmetic average return of company Y's stock is: |
(Click to select)17.60%19.89%14.26%21.47%22.00% |
Requirement 2: I have tried this many times and I cannot get the correct answer. | |
(a) | The variance of company X's stock returns is: (Do not round intermediate calculations.) |
(Click to select)0.036812, 0.029913, 0.036930, 0.046014, 0.046163 |
(b) | The variance of company Y's stock returns is: (Do not round intermediate calculations.) |
(Click to select)0.141787, 0.105385, 0.113430, 0.131731, 0.091878 |
Requirement 3: | |
(a) |
The standard deviation of company X's stock returns is: (Do not round intermediate calculations.) |
(Click to select)21.45%24.02%19.09%15.57%19.22% |
(b) |
The standard deviation of company Y's stock returns is: (Do not round intermediate calculations.) |
(Click to select)33.68%36.29%32.46%27.28%42.10% |
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