Two investments generated the following annual returns: 20X0 20X1 20X2 20X3 20X4 Investment X 13% 17 24 19 8 -Select- a. What is the average annual return on each investment? Round your answers to one decimal place. The average annual rate of return on X: The average annual rate of return on Y: b. What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places. % Standard deviation of X: Standard deviation of Y: c. Based on the standard deviation, which investment was riskier? was riskier. Investment 23% 26 14 25 20
Two investments generated the following annual returns: 20X0 20X1 20X2 20X3 20X4 Investment X 13% 17 24 19 8 -Select- a. What is the average annual return on each investment? Round your answers to one decimal place. The average annual rate of return on X: The average annual rate of return on Y: b. What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places. % Standard deviation of X: Standard deviation of Y: c. Based on the standard deviation, which investment was riskier? was riskier. Investment 23% 26 14 25 20
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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100%
![Two investments generated the following annual returns:
Investment X
13%
17
24
19
8
20X0
20X1
20X2
20X3
20X4
a. What is the average annual return on each investment? Round your answers to one decimal place.
The average annual rate of return on X:
The average annual rate of return on Y:
b. What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places.
-Select-
%
%
Standard deviation of X:
Standard deviation of Y:
c. Based on the standard deviation, which investment was riskier?
was riskier.
Investment Y
23%
26
14
25
20](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7b0925a-62a5-4510-9cb9-3fd1f0169fe6%2F47d46a91-d146-4fa5-b099-aa79c5d3f6a9%2Fu292iac_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Two investments generated the following annual returns:
Investment X
13%
17
24
19
8
20X0
20X1
20X2
20X3
20X4
a. What is the average annual return on each investment? Round your answers to one decimal place.
The average annual rate of return on X:
The average annual rate of return on Y:
b. What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places.
-Select-
%
%
Standard deviation of X:
Standard deviation of Y:
c. Based on the standard deviation, which investment was riskier?
was riskier.
Investment Y
23%
26
14
25
20
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