Using the following returns, calculate the arithmetic average returns, the varia
ID: 2615861 • Letter: U
Question
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y Returns Year 2 3 4 14% 32 21 24% 45 -22 -25 23 53 Requirement 1 (a) Calculate the arithmetic average return for X. (Click to select) (b) Calculate the arithmetic average return for Y (Click to select) Requirement 2: (a) Calculate the variance for X. (Do not round intermediate calculations.) (Click to select) (b) Calculate the variance for Y. (Do not round intermediate calculations.) (Click to select) Requirement 3 (a) Calculate the standard deviation for X. (Do not round intermediate calculations.) Click to select) (b) Calculate the standard deviation for Y. (Do not round intermediate calculations.) (Click to select)Explanation / Answer
Assuming the below is population data.
Year
Return X
Return B
(Return X - Average return of X)^2
(Return Y - Average return of Y)^2
1
14.00%
24.00%
0.00160%
0.46240%
2
32.00%
45.00%
3.38560%
7.72840%
3
21.00%
-11.00%
0.54760%
7.95240%
4
-22.00%
-25.00%
12.67360%
17.80840%
5
23.00%
53.00%
0.88360%
12.81640%
Total
68.00%
86.00%
17.49200%
46.76800%
Solution:
As question has not suggested any rounding specification, please use any of the below rounding (six decimal or two decimal):
Six decimal rounding
Two decimal rounding
a
Average Return X = Total X /5 = 68%/5 =
13.600000%
13.60%
b
Average Return Y = Total Y /5 = 86%/5 =
17.200000%
17.20%
a
Variance X = Total of ((Return X - Average return of X)^2)/5 = 17.49200%/5 =
3.498400%
3.4984%
b
Variance Y = Total of ((Return Y - Average return of Y)^2)/5 = 46.76800%/5 =
9.353600%
9.35%
a
Standard deviation X = Variance X^0.5 =
18.704010%
18.70%
b
Standard deviation Y = Variance Y^0.5 =
30.583656%
30.58%
Year
Return X
Return B
(Return X - Average return of X)^2
(Return Y - Average return of Y)^2
1
14.00%
24.00%
0.00160%
0.46240%
2
32.00%
45.00%
3.38560%
7.72840%
3
21.00%
-11.00%
0.54760%
7.95240%
4
-22.00%
-25.00%
12.67360%
17.80840%
5
23.00%
53.00%
0.88360%
12.81640%
Total
68.00%
86.00%
17.49200%
46.76800%
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.