abs lockesc2.00:42:35McGraw(c) Calculate the coefficient of variation for each fund, and use your results to compare the funds with respect to risk. Which fund isriskiest? (Round your answers to 2 decimal places.)!1Fund 1: Coefficient of Variation=Fund 2: Coefficient of Variation =Fund 3: Coefficient of Variation=Fund 1 is←QAU2NWS#33Fund 2 isсXEH%D$4RCand Fund 3 is%5< PrevG Search or type URLLLMacBook ProTV18 of 20^< 6GY&7BNext >HU8→JN91 18Consider three stock funds, which we will call Stock Funds 1, 2, and 3. Suppose that Stock Fund 1 has a mean yearly return of 11.70percent with a standard deviation of 15.50 percent; Stock Fund 2 has a mean yearly return of 11.50 percent with a standard deviation of17.90 percent, and Stock Fund 3 has a mean yearly return of 25.70 percent with a standard deviation of 7.00 percent.esc00:42:45McGrawHill(a) For each fund, find an interval in which you would expect 95.44 percent of all yearly returns to fall. Assume returns are normallydistributed. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.)Fund 1:Fund 2:Fund 3:. د1Fund 1 has theFund 2 has theFund 3 has theiti[(b) Using the intervals you computed in part a, compare the three funds with respect to average yearly returns and with respect tovariability of returns.Q(3.80)(6.40)18.70lowestlowesthighestFund 1: Coefficient of Variation =2(c) Calculate the coefficient of variation for each fund, and use your results to compare the funds with respect to risk. Which fund isriskiest? (Round your answers to 2 decimal places.)Waverage return and theaverage return and theaverage return and the27.20129.40132.701#3сED%$4RLvariability.variability.variability.%5< PrevG Search or type URLTMacBook Pro^18 of 206C&7Next >L* 008Y U+((-9

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Answered: and use your results to compare the…

College Algebra

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Chapter4: Linear Functions

Section4.3: Fitting Linear Models To Data

Problem 24SE: Table 6 shows the year and the number ofpeople unemployed in a particular city for several years....

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Show computation through excel. During the past 5 years, you owned 2 stocks that had the following annual rates of return. Year 1 2 3 4 5 Stock T 0.19 0.08 -0.12 -.030 0.15 Stock B 0.08 0.03 -0.09 0.02 0.04 1. Compute the arithmetic mean annual rate of return for each stock. Which stock is most desirable by this measure? 2. Compute the standard deviation of the annual rate of return for each stock. By this measure, which is the preferable stock? 3. Compute the coefficient of variation for each stock. By this relative measure of risk, which stock is preferable? 4. Compute the geometric mean rate of return for each stock. 5. Discuss the difference between the arithmetic mean return and the geometric mean return of each stock. Relate the differences in the mean returns to the standards deviation of the return for each stock.
You may need to use the appropriate technology to answer this question. Investors commonly use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund; in such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower standard deviation. The standard deviation for a certain fund, referred to as Fund A, and the standard deviation for a second fund, Fund B, were recently reported to be 14.0% and 18.9%, respectively. Assume that each of these standard deviations is based on a sample of 60 months of returns. Do the sample results support the conclusion that the Fund B has a larger population variance than Fund A? (Assume that ? = 0.05.) State the null and alternative hypotheses. H0: ?12 ≤ ?22 Ha: ?12 > ?22 H0: ?12 = ?22 Ha: ?12 ≠ ?22 H0: ?12 > ?22 Ha: ?12 ≤ ?22 H0: ?12 ≠ ?22 Ha: ?12 = ?22 Find the value of the test statistic. Find the p-value. (Round your answer to four…
Please answer B and C. The Knowles/Armitage (KA) group at Merrill Lynch advises clients on how to create a diversified investment portfolio. One of the investment alternatives they make available to clients is the All World Fund composed of global stocks with good dividend yields. One of their clients is interested in a portfolio consisting of investment in the All World Fund and a treasury bond fund. The expected percent return of an investment in the All World Fund is 10% with a standard deviation of 17.60% . The expected percent return of an investment in a treasury bond fund is 5.90% and the standard deviation is 3.60%. The covariance of an investment in the All World Fund with an investment in a treasury bond fund is -14.5. b. If KA recommends that the client invest 75% in the All World Fund and 25% in the treasury bond fund, what is the expected percent return and standard deviation for such a portfolio? What would be the expected return and standard deviation, in dollars, for…
you can just answer no. 2
Example 10: P and Q two securities, with expected returns of 15% and 24% respectively, and standard deviation of 35% and 52% respectively. Calculate the standard deviation of a portfolio weighted equally between the two securities if their correlation is -0.9.
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( Previous Ne CAPM The Capital Asset Pricing Model (CAPM) is a financial model that assumes returns on a portfolio are normally distributed. Suppose a portfolio has an average annual return of 11.5% (i.e. an average gain of 11.5%) with a standard deviation of 38.5%. A return of 0% means the value of the portfolio doesnt change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. (a) What percent of years does this portfolio lose money, i.e. have a return less than 0%? (b) What percent of years does this portfolio return more than 15%? (c) What percent of years does this portfolio return between 18% and 35%? (d) What is the cutoff for the highest 40% of annual returns with this portfolio? Submit answer M US V 0 10: acer
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and use your results to compare the funds with respect to risk. Which fund is and Fund 3 is < Prev 18 of 20 Next >