Using the following returns, calculate the arithmetic average returns, the varia
ID: 2620822 • 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 4 20 % 8% 26 15 -16 17 -7 21 49 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
Year
Return X
Return Y
(Return X - Average return of X)^2
(Return Y - Average return of Y)^2
1
8.00%
20.00%
0.04000%
0.12960%
2
26.00%
41.00%
2.56000%
6.05160%
3
15.00%
-7.00%
0.25000%
5.47560%
4
-16.00%
-21.00%
6.76000%
13.98760%
5
17.00%
49.00%
0.49000%
10.62760%
Total
50.00%
82.00%
10.10000%
36.27200%
Six decimal places
a
Average Return X = Total X /5 =
10.000000%
b
Average Return Y = Total Y /5 =
16.400000%
a
Variance X = Total of ((Return X - Average return of X)^2)/5 =
2.020000%
b
Variance Y = Total of ((Return Y - Average return of Y)^2)/5 =
7.254400%
a
Standard deviation X = Variance X^0.5 =
14.212670%
b
Standard deviation Y = Variance Y^0.5 =
26.933993%
Year
Return X
Return Y
(Return X - Average return of X)^2
(Return Y - Average return of Y)^2
1
8.00%
20.00%
0.04000%
0.12960%
2
26.00%
41.00%
2.56000%
6.05160%
3
15.00%
-7.00%
0.25000%
5.47560%
4
-16.00%
-21.00%
6.76000%
13.98760%
5
17.00%
49.00%
0.49000%
10.62760%
Total
50.00%
82.00%
10.10000%
36.27200%
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