Question

# The table below shows annual returns for stocks of companies X and Y. Calculate the arithmetic...

 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.

 Returns Year X Y 1 7 % 22 % 2 25 43 3 14 -9 4 -15 -23 5 16 51

 Requirement 1: (a) The arithmetic average return of company X's stock is: (Click to select)  7.61%  10.62%  9.40%  11.75%  11.47%

 (b) The arithmetic average return of company Y's stock is: (Click to select)  20.50%  16.80%  13.61%  21.00%  18.98%

 Requirement 2: (a) The variance of company X's stock returns is: (Do not round intermediate calculations.) (Click to select)  0.018411  0.022730  0.022360  0.027950  0.028412

 (b) The variance of company Y's stock returns is: (Do not round intermediate calculations.) (Click to select)  0.129150  0.095996  0.083689  0.119995  0.103320

 Requirement 3: (a) The standard deviation of company X's stock returns is: (Do not round intermediate calculations.) (Click to select)  14.85%  18.85%  15.08%  12.21%  16.72%

 (b) The standard deviation of company Y's stock returns is: (Do not round intermediate calculations.) (Click to select)  30.98%  26.04%  34.64%  32.14%  40.18%

#### Earn Coins

Coins can be redeemed for fabulous gifts.