Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Stock XYZ 3.4 24.9 10.5 30.6 16.0 25.7 27.3 20.7 15.3 26.9 39.0 Broad Market Index Fund DEF 15.4 15.3 12.0 24.9 26.9 -2.8 21.8 21.0 23.7 11.8 20.2 Bond ABC 4.9 7.8 12.2 5.1 13.1 7.6 8.8 6.0 12.9 11.0 13.9 Sanders Insurance Company is trying to identify an investment plan for their unearned premium reserves. They are considering three investment options. To the left are historical returns for eacch option. For each option, do the following: 1. calculate the average return. 2. calculate the return standard deviations. 3. calculate the coefficient of variation. Calculate the standard deviations two ways: using the Excel function and do the step-by-step process in Excel (difference column, square column, ...). Which investment option would you recommend to Sanders Insurance? Explain your decision.
Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Stock XYZ 3.4 24.9 10.5 30.6 16.0 25.7 27.3 20.7 15.3 26.9 39.0 Broad Market Index Fund DEF 15.4 15.3 12.0 24.9 26.9 -2.8 21.8 21.0 23.7 11.8 20.2 Bond ABC 4.9 7.8 12.2 5.1 13.1 7.6 8.8 6.0 12.9 11.0 13.9 Sanders Insurance Company is trying to identify an investment plan for their unearned premium reserves. They are considering three investment options. To the left are historical returns for eacch option. For each option, do the following: 1. calculate the average return. 2. calculate the return standard deviations. 3. calculate the coefficient of variation. Calculate the standard deviations two ways: using the Excel function and do the step-by-step process in Excel (difference column, square column, ...). Which investment option would you recommend to Sanders Insurance? Explain your decision.
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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