Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. |
Returns | ||
Year | X | Y |
1 | 8 % | 20 % |
2 | 26 | 41 |
3 | 15 | -7 |
4 | -16 | -21 |
5 | 17 | 49 |
Requirement 1: | |
(a) | Calculate the arithmetic average return for X. |
11.30% 10.00% 8.10% 12.50% 12.20% |
(b) | Calculate the arithmetic average return for Y. |
18.53% 20.50% 13.28% 20.01% 16.40% |
Requirement 2: | |
(a) | Calculate the variance for X. (Do not round intermediate calculations.) |
0.025250 0.031563 0.020453 0.031158 0.024927 |
(b) | Calculate the variance for Y. (Do not round intermediate calculations.) |
0.106571 0.090680 0.113350 0.073451 0.085257 |
Requirement 3: | |
(a) |
Calculate the standard deviation for X. (Do not round intermediate calculations.) |
12.87% 17.65% 15.69% 19.86% 15.89% |
(b) |
Calculate the standard deviation for Y. (Do not round intermediate calculations.) |
24.39% 29.20% 37.64% 32.65% 30.11% |
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