Calculate the average returns, variance and standard deviation for three securities X, Y and Z that have performed as follows. Returns % Year X Y Z 1 11 36 -3 2 6 -7 0 3 -8 21 5 4 28 -12 9 5 13 43 5 ii) Is there any basis for preferring one of these securities over the others? iii) Calculate the covariances between X, Y and Z.
Calculate the average returns, variance and standard deviation for three securities X, Y and Z that have performed as follows. Returns % Year X Y Z 1 11 36 -3 2 6 -7 0 3 -8 21 5 4 28 -12 9 5 13 43 5 ii) Is there any basis for preferring one of these securities over the others? iii) Calculate the covariances between X, Y and Z.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
3) i) Calculate the average returns, variance and standard deviation for three securities X, Y and Z that have performed as follows.
|
Returns % |
||||
|
|
Year |
X |
Y |
Z |
|
|
1 |
11 |
36 |
-3 |
|
|
2 |
6 |
-7 |
0 |
|
|
3 |
-8 |
21 |
5 |
|
|
4 |
28 |
-12 |
9 |
|
|
5 |
13 |
43 |
5 |
- ii) Is there any basis for preferring one of these securities over the others?
iii) Calculate the covariances between X, Y and Z.
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