4. Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Year 1 2 3 Return X Y 12% 25% 28% 34% 9% 13% -7% -27%

Q: Year 12345 Returns x ܙܢ 13% 27% 26 36 11 -5 -29 11 16 Using the returns shown above, calculate the…

A: In the given case, we have provided the returns for Stock X and Y of the given specified number of…

Q: Year 2017 2018 2019 2020 2021 2022 Price Dividend 83.64 68.19 69.69 41.88 61.19 110.3 3.23 3.43 3.48…

A: YearsPriceDividend201783.64201868.193.23201969.693.43202041.883.48202161.193.492022110.33.55Required…

Q: onsider the following data: 2 9 6 alculate the Sample Variance. Round to one decimal pl 3.09 O 12.1…

A: Solution:- Calculation of the sample variance as follows:-

Q: Returns Year Y 12345 16% 22% 30 31 -23 -28 11 12 10 22 Using the returns shown above, calculate the…

A:

Q: Fint vaviana s SD. 13 q 314 I |l T0 1 2

A: Variance and standard deviation is measure of deviation from mean value. Variance = ∑(x-xbar)2/(n-1)…

Q: Year 12345 Returns X 15% 18 9 -9 10 Y 20% 30 15 -16 20 Using the returns shown above, calculate the…

A: Standard deviation is a measure of how spread out the values in a data set are from the mean. It is…

Q: Coefficient of Variation

A: Please note that I'm assuming that we need to calculate the Coefficient of variation of the 2…

Q: Problem 10-7 Calculating Returns and Variability Returns Year X Y 1 19% 15% 2345 22 34 -15 -20 8 14…

A: Step 1:Given : Step 2:Average Return, Variance, and Standard Deviation are important concepts used…

Q: Use the following returns for X and Y. Year 1 2 3 4 5 X 21.4% -16.4 9.4 18.8 4.4 Returns. Y 25.28…

A: YearsReturn XReturn Y121.4%25.2%2-16.4%-3.4%39.4%27.2%418.8%-13.8%54.4%31.2%Required: Average Return…

Q: Co-Variance of A & B is 28. Risk of Investment A is 5 while that of B is 6.25. Corelation will be…

A: Given:Co-Variance of A&B=28Risk of investment A=5Risk of investment B=6.25To…

Q: A population data set has a mean of 81 and a standard deviation of 5.2 find the z-scores for each of…

A:

Q: Average returns Variances Standard deviations > Answer is complete but not entirely correct. X Y…

A: Variance = wheren = number of years involved.

Q: Given the following historical returns, what is the variance? Year 1 = 9%; year 2 = -11%; year 3 =…

A: The objective of the question is to calculate the variance of the given historical returns. Variance…

Q: What is the standard deviation given the following information? Probability Possible Returns 24.0%…

A: Probability (P)Possible Returns0.2524.0%0.2036.0%0.559.0%Required:Standard Deviation =?

Q: Given the following historical returns, what is the variance? Year Return 1 7 percent 3 percent 3.…

A: Return in year 1 (R1) = 7% R2 = 3% R3 = 19% R4 = -11% R5 = -1% Let R = Average return

Q: Consider the following information: State Probability i of State i Actual Return of Johnson and…

A: Step 1: Expected Return (Mean)Expected Return = (Probability of Boom * Return in Boom) +…

Q: You have the following information: t1 t2 t3 t4 Walmart Returns 0.06 0.03 -0.01 -0.04 Market Returns…

A: The spread of a company's or portfolio's returns around their own mean return is known as the…

Q: Thestandard error of the mean is equal to:a.the sample variance divided by the sample size.b.the…

A: Standard error of the mean (SEM) is a measure of the difference between the mean of the sample and…

Q: 1. What is the variance of Johnson and Johnson? (Round to 6 decimals) (Remember Variance is not in…

A: The gain or loss that a portfolio of securities with a variety of different investments makes is…

Q: Returns Year X -2345 1 16% 22% 30 -23 31 -28 11 12 10 22 Using the returns shown above, calculate…

A: For return X:Convert the percent returns to…

Q: Given the following historical returns, what is the variance? Year 1 = 9%; year 2 = -11%; year 3 =…

A: The objective of the question is to calculate the variance of the given historical returns. Variance…

Q: Assume the mean and standard deviation of sample returns are​ 8% and​ 10% respectively. Assuming…

A: Sample returns are 8% Standard deviation is 10% Returns are normally distributed To Find:…

Q: Consider the data scores 8, 9, 13, 20, and 25. Solve for the Range, Mean, Standard Deviation and…

A: The range, mean, standard deviation and variance are the terms used to analyse the nature of the…

Q: None

A: Average Returns:For X:Average Return for X=(1+33+2−14+4)/5 = 26/5 = 5.2% For Y:Average Return for…

Q: Given the following historical returns, what is the variance? Year 1 = 9%; year 2 = -11%; year 3 =…

A: Step 1: Step 2:Step 3:Step 4:Tye variance of the returns are Var(R)= 0.0122

Q: What is the variance of returns for Security ABC

A: In finance we use variance of returns as a measure of risk that is inherent in a stock or a…

Q: Returns Year Y 14 % 20 % 17 29 8. 15 - 10 - 1 19 10 Using the returns shown above, calculate the…

A: Arithmetic Average Return =R1 + R2 + ... + Rn/n Arithmetic Average Return of X Stock = 39%/5 = 7.80%…

Q: Over the past 3 years an investment returned 0.16, -0.11, and 0.08. What is the variance of returns?

A: In the given case, the investment returned of the past 3 years are given . So, number of years is 3.…

Q: Year 12345 Returns X 20% 23 9 -16 10 Y 15% 35 14 -21 25 Using the returns shown above, calculate the…

A: Average return is a measure of the expected gain or loss on an investment over a certain period,…

Q: Returns Year X 512345 12% 18% 26 27 -19 -24 12 10 10 18 Using the returns shown above, calculate the…

A: Arithmetic average return:The arithmetic average return is the simple average return. It is…

Q: I. WORDS TOTAL number of words required for whole question writing, MINIMUM 600 General…

A: The objective of this question is to calculate the yearly return for each year from 2020 to 2023 and…

Q: Year Returns X Y 16% 20% ok nces 12345 19 31 10 15 -8 5 10 -17 21 Using the returns shown above,…

A: For X:Average return (x̄)x̄ = Sum of all data/ Number of datax̄ = 516+19+10+(−8)+10​x̄ = 9.40Average…

Q: Use the following returns for X and Y. Year 1 2 3 4 5 Returns X 21.7% -16.7 9.7 19.4 4.7 Y 26.1%…

A: YearStock XStock Y121.7%26.1%2-16.7%-3.7%39.7%28.1%419.4%-14.4%54.7%32.1%

Q: Year Returns X Y 1 11% 18% 2 25 26 3 11 10 4 −18 −23 5 10 17 Using the…

A: Arithmetic average return refers to the average rate of return earned over a period of time over the…

Q: Calculate the coefficient of variation for a set of data with standard deviation of 4.2, number of…

A: The coefficient of variation is a ratio calculated by dividing the standard deviation by the mean.…

Q: According to mean-variance rule A. The expected return of X is at least equal to the expected return…

A: As per Mean Variance Rule, For same level of return, investor choose one with lower variance and for…

Q: R(S&P 500) AMZN Average 2.59% 4.36% Variance 0.00085 0.00660 St. Dev. 5.32% 8.13% Intercept 0.0302…

A: Jensen's Alpha is a risk-adjusted performance measure that represents the average return on a…

Q: 3. Security A has the following probability distribution of returns: Scenario Probability Return 0.1…

A: Calculation: Formula snip:

Q: Adj Close Return SPY Variance Deviation -0.036360 2/1/2018 248.46266 -0.031291 3/1/2018 240.68814…

A: To calculate the variance and standard deviation of the Adj Close Return for SPY from the given…

Q: coefficient variation=.55 positive coeficient of correlation =.20 expected value=$1200 What does…

A: The measure that is used to calculate the dispersion of dataset is called the standard deviation. It…

Q: 1 15% 21%

A: Give :XY15212636713-13-261115To calculate the arithmetic average returns for X and Y:For X:Average…

Q: Assuming that the rates of return associated with a given asset investment are normally distributed;…

A: a) Calculation of standard deviation:Standard deviation is 0.3516.Standard deviation can be derived…

Q: None

A: We will compute the sample average return (mean), sample standard deviation, and sample variance…

Q: What is the variance and standard deviation of 10%, (15%), 25%, 17%, 3% ?

A: In this question, we are required to determine variance and standard deviation.

Q: Year X Returns 18% 21 « ྂསཋ° 12345 12 Y 15% 33 14 10 -19 23 -14 Using the returns shown above,…

A: Solution The arithmetic average is the ratio of sum of annual return to the number of years of…

Q: Returns   Year X Y   1   20 %   15 %   2   23     35     3   9     14     4 − 16   − 21     5   10…

A: Standard Deviation: It represents the dispersion in a set of data that is relative to the average…

Q: Consider the following five monthly​ returns:   0.04 −0.03 0.03 0.07 −0.02   a. Calculate the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Year Returns x Y 12345 8% 12% 2 21 27 3 - 27 - 32 4 11 18 18 24 Using the returns shown above,…

A: Standard deviation is measure of risk and is measured as deviation from mean return of the stock.

Q: The variances of stocks A and B are 1 percentage square and 4 percentage square, respectively. If…

A: Correlation coefficient is a standardized measure of co-movement between two stocks. The correlation…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.