t124 Do bonds reduce the overall risk of an investment portfolio? Let x be a ran
ID: 3291604 • Letter: T
Question
t124
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data.
15
0
21
21
22
19
17
23
20
16
21
6
10
15
14
9
27
11
1
9
Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.)
Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.)
Compute the coefficient of variation for each fund. (Round your answers to the nearest whole number.)
x:15
0
21
21
22
19
17
23
20
16
y:21
6
10
15
14
9
27
11
1
9
Explanation / Answer
as per Chebychev; 75% value lies 2 std deviation away from mean.,
therefore
as coefficient of variation =(std deviaiton/mean)*100
therefore
x y 15 21 0 -6 21 10 21 15 22 14 19 9 17 27 -23 -11 -20 -1 -16 -9 mean 5.6 6.9 std deviation 18.5963 13.0593Related Questions
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