Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute .     12 0 37 21 34 23 24 -12 -12 -21   7 -5 27 15 22 17 15 -5 -6 -7 Group of answer choices 2111 2062 2087 2136

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Author:Amos Gilat
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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 the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute .
 
  12 0 37 21 34 23 24

-12

-12

-21

  7

-5

27 15 22 17 15

-5

-6

-7

Group of answer choices
2111
2062
2087
2136
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual
percent return for the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual
return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the
following data. Compute ².
X:
y:
12 0 37 21 34 23 24 -12 -12
7
2111
2062
2087
2136
-5 27
15 22 17 15 -5 -6
-21
-7
Transcribed Image Text:Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute ². X: y: 12 0 37 21 34 23 24 -12 -12 7 2111 2062 2087 2136 -5 27 15 22 17 15 -5 -6 -21 -7
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