Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. x 19 0 13 33 18 11 31 -20 -12 -16 y 17 -10 9 27 17 8 25 -3 -2 -3

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Question

Urgent key required

(a) Compute Σx, Σχ, ΣΥ, ΣΥ.
Ex
Ex²
Ey
Ey
(b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and
for y. (Round your answers to four decimal places.)
y
S
X
(c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your
answers to two decimal places.)
Lower Limit
Upper Limit
CV
Use the intervals to compare the two funds.
75% of the returns for the balanced fund fall within a narrower range than those of the stock fund.
75% of the returns for the stock fund fall within a narrower range than those of the balanced fund.
25% of the returns for the balanced fund fall within a narrower range than those of the stock fund.
25% of the returns for the stock fund fall within a wider range than those of the balanced fund.
(d) Compute the coefficient of variation for each fund. (Round your answers to the nearest whole number.)
y
%
Transcribed Image Text:(a) Compute Σx, Σχ, ΣΥ, ΣΥ. Ex Ex² Ey Ey (b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and for y. (Round your answers to four decimal places.) y S X (c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.) Lower Limit Upper Limit CV Use the intervals to compare the two funds. 75% of the returns for the balanced fund fall within a narrower range than those of the stock fund. 75% of the returns for the stock fund fall within a narrower range than those of the balanced fund. 25% of the returns for the balanced fund fall within a narrower range than those of the stock fund. 25% of the returns for the stock fund fall within a wider range than those of the balanced fund. (d) Compute the coefficient of variation for each fund. (Round your answers to the nearest whole number.) y %
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing
annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing
annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we
have the following data.
x 19 0 13 33 18 11 31 -20 -12 -16
y 17 -10 9 27 17 8 25 -3 -2 -3
Transcribed Image Text:Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. x 19 0 13 33 18 11 31 -20 -12 -16 y 17 -10 9 27 17 8 25 -3 -2 -3
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman