Question: 1) Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1
1)
| Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. |
| Returns | ||
| Year | X | Y |
| 1 | 11 % | 22 % |
| 2 | 29 | 43 |
| 3 | 18 | -13 |
| 4 | -19 | -27 |
| 5 | 20 | 51 |
| Calculate the arithmetic average return for X. |
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| Calculate the arithmetic average return for Y. |
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| Calculate the variance for X. |
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| Calculate the variance for Y. |
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| Calculate the standard deviation for X. |
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| Calculate the standard deviation for Y. |
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2)
| A stock had returns of 18 percent, 16 percent, 15 percent, 8 percent, 13 percent, and 2 percent over the last six years. |
| What is the arithmetic return for the stock?
What is the geometric return for the stock? |
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