Given: Two funds- Vanguard Stock Index Funds(VSIF) and Vanguard Balanced Index funds(VBIF). 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 Index Fund(60% stock and 40%bond). Make reasonable assumptions whether it is a sample or population. You can choose either one. For the past several years assume the following data: X: 13 0 37 24 32 26 27 -12 -12 -24 Y: 8 -2 26 15 25 18 15 -3 -4 -9 1. Compute the Coefficient of variation(CV) for each fund. Round your answers to the nearest tenth 2. If CV represents risk per unit of return,which fund appears to be better? Explain 3. Compute a 75% Chebyshev's interval around the mean for the X and Y values
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Given: Two funds- Vanguard Stock Index Funds(VSIF) and Vanguard Balanced Index funds(VBIF).
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 Index Fund(60% stock and 40%bond). Make reasonable assumptions whether it is a sample or population. You can choose either one.
For the past several years assume the following data:
X: 13 0 37 24 32 26 27 -12 -12 -24
Y: 8 -2 26 15 25 18 15 -3 -4 -9
1. Compute the Coefficient of variation(CV) for each fund. Round your answers to the nearest tenth
2. If CV represents risk per unit of return,which fund appears to be better? Explain
3. Compute a 75% Chebyshev's interval around the
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