Using the following returns, calculate the arithmetic average returns, the varia
ID: 2713910 • Letter: U
Question
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.
A.)12.50%
B.)10.00%
C.)12.20%
D.)8.10%
E.)11.30%
A.)18.20%
B.)22.20%
C.)20.57%
D.)22.75%
E.)14.74%
A.)0.031158
B.)0.025250
C.)0.020453
D.)0.031562
E.)0.024927
A.)0.116920
B.)0.146150
C.)0.094705
D.)0.136490
E.)0.109192
Calculate the standard deviation for X. (Do not round intermediate calculations.)
A.)17.65%
B.)12.87%
C.)15.69%
D.)19.86%
E.)15.89%
Calculate the standard deviation for Y. (Do not round intermediate calculations.)
A.)33.04%
B.)27.70%
C.)34.19%
D.)42.74%
E.)36.94%
A.)12.50%
B.)10.00%
C.)12.20%
D.)8.10%
E.)11.30%
Y 25 46-14 54 Y56044 24-25 R% X86567 X 2111 e12345Explanation / Answer
Enter these yearly returns in an excel sheet and calculate the required using the formulas as below
Stock X
1. Average return =AVERAGE(A1:A5) = 10.00%
2. Variance =VAR.S(A1:A5) = 0.025250
3. Standard Deviation = STDEV.S(A1:A5) = 15.89%
A1 to A5 has yearly returns for X
Stock Y
1. Average return =AVERAGE(B1:B5) = 18.20%
2. Variance =VAR.S(B1:B5) = 0.116920
3. Standard Deviation = STDEV.S(B1:B5) = 34.19%
B1 to B5 has yearly returns for Y
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