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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

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