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 | ||||||||
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Calculate the average returns for X and
Y.
Average returns | ||
X | % | |
Y | % | |
|
Calculate the variances for X and Y.
Variances | ||
X | ||
Y | ||
|
Calculate the standard deviations for X and Y.
Standard deviations | ||
X | % | |
Y | % | |
|
AVg Return:
AVg ret = Sum of returns / n
Variance = Sum [ (X-Avg X)2] / n
Variance = Sum [ (Y-Avg Y)2] / n
Variance of X:
Variance of Y:
SD = Sqaure root [Varince]
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