Year 123 2 4 5 Returns X 17% 20 -7 11 10 Y 20% 32 Average returns Variances Standard deviations - 18 15 22 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.) X % % Y % %
Year 123 2 4 5 Returns X 17% 20 -7 11 10 Y 20% 32 Average returns Variances Standard deviations - 18 15 22 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.) 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
Transcribed Image Text:Year
123
2
4
5
Returns
X
17%
20
-7
11
10
Y
20%
32
Average returns
Variances
Standard deviations
- 18
15
22
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.)
X
%
%
Y
%
%
Expert Solution
Step 1: Table for X
Year | X | Deviation=X-Xbar | Deviation^2 |
| 1 | 17 | 6.8 | 46.24 |
| 2 | 20 | 9.8 | 96.04 |
| 3 | -7 | -17.2 | 295.84 |
| 4 | 11 | 1.2 | 1.44 |
| 5 | 10 | -0.2 | 0.04 |
| Total | 51 | 439.6 | |
| X bar | 51/5 = 10.2 |
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Follow-up Questions
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Follow-up Question
Transcribed Image Text:Average returns
Variances
Standard
deviations
> Answer is complete but not entirely correct.
X
Y
10.20 %
14.20 %
109.90000 X
10.48
%
362.20000 X
19.03 %
Solution
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