Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

70.2K

Verified Solution

Question

Finance

Using the following returns, calculate the arithmetic averagereturns, the variances, and the standard deviations for X andY.

Returns
Year X Y
1 12 %     20 %
2 30         41
3 19         -7
4 -20         -21
5 21         49

Requirement 1:
(a) Calculate the arithmetic average return for X.
(Click to select)10.04%15.13%15.50%12.40%14.01%

(b) Calculate the arithmetic average return for Y.
(Click to select)13.28%16.40%20.50%20.01%18.53%

Requirement 2:
(a) Calculate the variance for X. (Do not roundintermediate calculations.)
(Click to select)0.0369300.0368120.0299130.0461630.046014

(b) Calculate the variance for Y. (Do not roundintermediate calculations.)
(Click to select)0.0852570.1065710.0906800.0734510.113350

Requirement 3:
(a)
Calculate the standard deviation for X. (Do not roundintermediate calculations.)
(Click to select)19.09%24.02%15.57%21.45%19.22%

(b)
Calculate the standard deviation for Y. (Do not roundintermediate calculations.)
(Click to select)30.11%24.39%37.64%29.20%32.65%

Answer & Explanation Solved by verified expert

4.4 Ratings (593 Votes)

Requirement 1 a Arithmetic average return for X X1 X2 X3 X4 X55 12 30 19 20 215 62 5 1240 Hence option 1240 is correct answer b Arithmetic average return for Y Y1 Y2 Y3 Y4 Y55 20 41 7 21 495 82 5 1640 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Using the following returns, calculate the arithmetic averagereturns, the variances, and the standard deviations for X andY. ReturnsYearXY112 % 20 % 230 41 319 -7 4-20 -21 521 49 Requirement 1:(a)Calculate the arithmetic average return for X.(Click to select)10.04%15.13%15.50%12.40%14.01% (b)Calculate the arithmetic average return for Y.(Click to select)13.28%16.40%20.50%20.01%18.53% Requirement 2:(a)Calculate the variance for X. (Do not roundintermediate calculations.)(Click to select)0.0369300.0368120.0299130.0461630.046014 (b)Calculate the variance for Y. (Do not roundintermediate calculations.)(Click to select)0.0852570.1065710.0906800.0734510.113350 Requirement 3:(a)Calculate the standard deviation for X. (Do not roundintermediate calculations.)(Click to select)19.09%24.02%15.57%21.45%19.22% (b)Calculate the standard deviation for Y. (Do not roundintermediate calculations.)(Click to select)30.11%24.39%37.64%29.20%32.65%

Requirement 2:
(a)	Calculate the variance for X. (Do not roundintermediate calculations.)

	(Click to select)0.0369300.0368120.0299130.0461630.046014

Requirement 3:
(a)	Calculate the standard deviation for X. (Do not roundintermediate calculations.)

	(Click to select)19.09%24.02%15.57%21.45%19.22%

Requirement 1:
(a)	Calculate the arithmetic average return for X.

	(Click to select)10.04%15.13%15.50%12.40%14.01%

(b)	Calculate the arithmetic average return for Y.

	(Click to select)13.28%16.40%20.50%20.01%18.53%

(b)	Calculate the variance for Y. (Do not roundintermediate calculations.)

	(Click to select)0.0852570.1065710.0906800.0734510.113350

(b)	Calculate the standard deviation for Y. (Do not roundintermediate calculations.)

	(Click to select)30.11%24.39%37.64%29.20%32.65%