Question

Betty and Bob Mutual Fund has generated the following rates of return for the last six...

Betty and Bob Mutual Fund has generated the following rates of return for the last six years respectively:

.18, -.15, .30, .06, .24, .10

a. Compute the median.

b. Compute the sample standard deviation.

c. Compute the effective rate of return for the 6 year period.

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Answer #1

a, median

the median is the value separating the higher half from the lower half of a data sample, here the population size is 6 and for the data .18, -.15, .30, .06, .24, .10 rearranging accordingly -.15,.06,.10,.18,.24,.30 and the median is 0.14

b,standard deviation

the standard deviation is a measure of the amount of variation or dispersion of a set of values.

the standard deviation is 0.14

c, effective rate of return

(current value-orginal value)/current value*100

= ( .10-.18)/0.18

=44.44%

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