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
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Urgent key required
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
%
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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