sons- MATH1127: IntroductFarCSection 3.2 Measures of Variatiowebassign.net/web/Student/Assignment-Responses/submit?dep=30747023&tags=autosave#question5021161_4You do not need a lot of money to invest in a mutual fund. However, if you decide to put some money into an investment, you are usually advised to leave it in for (at least) severalyears. Why? Because good years tend to cancel out bad years, giving you a better overall return with less risk. To see what we mean, let's use a 3-year moving average on the CalvertSocial Balanced Fund (a socially responsible fund).5% Return-4.74-2.38(a) Use a calculator with mean and standard deviation keys to find the mean and standard deviation of the annual return for all 11 years. (Round your answers to two decimalplaces.)9Need Help?1Read It217.79Body Structure Flashcards | Quic X +7.465.9525.85Q Search62.89 9,0279.03(b) To compute a 3-year moving average for 1992, we take the data values for year 3 and the prior 2 years and average them. To compute a 3-year moving average for year 4,we take the data values for year 4 and the prior 2 years and average them. Verify that the following 3-year moving averages are correct.710.0518.92Year3410.40817.933-year moving average 9.01(c) Use a calculator with mean and standard deviation keys to find the mean and standard deviation of the 3-year moving average. (Round your answers to two decimal places.917.496.80hp2 DPause1015.15 14.40(d) Compare the results of parts (a) and (c). Suppose we take the point of view that risk is measured by standard deviation. Is the risk (standard deviation) of the 3-year moviaverage considerably smaller?The means are fairly similar, but the standard deviation of moving averages is much lower. This implies the risk of the 3-year moving average is considerably greater.The means are fairly similar, but the standard deviation of moving averages is much higher. This implies the risk of the 3-year moving average is considerably greater.The means are fairly similar, but the standard deviation of moving averages is much lower. This implies the risk of the 3-year moving average is considerably smaller.The means are fairly similar, but the standard deviation of moving averages is much higher. This implies the risk of the 3-year moving average is considerably smaller.117.3011:522/6/

You do not need a lot of money to invest in a mutual fund. However, if you decide to put some money into an investment, you are usually advised to leave it in for (at least) several years. Why? Because good years tend to cancel out bad years, giving you a better overall return with less risk. To see what we mean, let's use a 3-year moving average on the Calvert Social Balanced Fund (a socially responsible fund). X= S= Year % Return % S= 1 1.78 % 2 17.79 3 (a) Use a calculator with mean and standard deviation keys to find the mean and standard deviation of the annual return for all 11 years. (Round your answers to two decimal places.) 7.46 Year 3 3-year moving average 9.01 4 5 5.95 -4.74 6 7 8 9 25.85 9.03 18.92 17.49 10 6.80 (b) To compute a 3-year moving average for 1992, we take the data values for year 3 and the prior 2 years and average them. To compute a 3-year moving average for year 4 we take the data values for year 4 and the prior 2 years and average them. Verify that the following 3-year moving averages are correct. 11 -2.38 4 5 6 7 8 9 10 10.40 2.89 9.02 10.05 17.93 15.15 14.40 11 7.30 (c) Use a calculator with mean and standard deviation keys to find the mean and standard deviation of the 3-year moving average. (Round your answers to two decimal places % X= % (d) Compare the results of parts (a) and (c). Suppose we take the point of view that risk is measured by standard deviation. Is the risk (standard deviation) of the 3-year mov average considerably smaller? O The means are fairly similar, but the standard deviation of moving averages is much lower. This implies the risk of the 3-year moving average is considerably greater. O The means are fairly similar, but the standard deviation of moving averages is much higher. This implies the risk of the 3-year moving average is considerably greater. O The means are fairly similar, but the standard deviation of moving averages is much lower. This implies the risk of the 3-year moving average is considerably smaller. O The means are fairly similar, but the standard deviation of moving averages is much higher. This implies the risk of the 3-year moving average is considerably smaller.