Answered: Do bonds reduce the overall risk of an…

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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Question

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 a 75%
Chebyshev interval around the mean for x-values and also for y-values. Round your answers
to the nearest hundredth.
x: 13 0 36 25 34 27 28 –13 –13 –25
y: 10 –5 28 16 26 17 16 –5 –6 –10

Group of answer choices

for x-values: –33.36 to 25.30 and for y-values: –5.40 to –17.00

for x-values: –33.36 to 25.30 and for y-values: –19.50 to 22.80

for x-values: –19.50 to 36.90 and for y-values: –33.36 to 55.76

for x-values: –11.08 to 55.76 and for y-values: –5.40 to 36.90

for x-values: –33.36 to 55.76 and for y-values: –19.50 to 36.90

Expert Solution