Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16. Enter your variance answers rounded to 5 decimal places, e.g., .16161.) Average returns Variances Standard deviations X % % Y % %
Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16. Enter your variance answers rounded to 5 decimal places, e.g., .16161.) Average returns Variances Standard deviations X % % Y % %
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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Question
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Transcribed Image Text:es
www
Year
1
2
3
4
5
Returns
X59200
15 %
-22
10
10
Y
22%
30
-27
"*
10
21
Using the returns shown above, calculate the arithmetic average returns, the variances,
and the standard deviations for X and Y. (Do not round intermediate calculations. Enter
your average return and standard deviation answers as a percent rounded to 2
decimal places, e.g., 32.16. Enter your variance answers rounded to 5 decimal places,
e.g., .16161.)
Average returns
Variances
Standard deviations
X
15
%
%
%
Y
%
&
Transcribed Image Text:Suppose we have the following Treasury bill returns and inflation rates over an eight-
year period:
Year Treasury Bills
1
·2345678
7.37%
8.07
5.95
Treasury bills
Inflation
5.15
5.53
7.72
10.64
12.18
Inflation
8.79%
a. Calculate the arithmetic average return for Treasury bills and the average annual
inflation rate (consumer price index) for this period. (Do not round intermediate
calculations and enter your answers as
32.16.)
percent rounded to 2 decimal places, e.g.,
Average return
12.42
7.02
4.94
6.78
9.10
13.37
12.60
%
%
#
Q
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