Question: 5.12 Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1
5.12
| Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. |
| Returns | ||
| Year | X | Y |
| 1 | 7 % | 24 % |
| 2 | 25 | 45 |
| 3 | 14 | -11 |
| 4 | -15 | -25 |
| 5 | 16 | 53 |
| Requirement 1: | |
| (a) | Calculate the arithmetic average return for X. |
| (Click to select)11.75%9.40%11.47%7.61%10.62% | |
| (b) | Calculate the arithmetic average return for Y. |
| (Click to select)21.50%19.44%20.98%17.20%13.93% |
| Requirement 2: | |
| (a) | Calculate the variance for X. (Do not round intermediate calculations.) |
| (Click to select)0.0284120.0184110.0223600.0227300.027950 | |
| (b) | Calculate the variance for Y. (Do not round intermediate calculations.) |
| (Click to select)0.1075190.0947050.1343990.1169200.146150 |
| Requirement 3: | |
| (a) | Calculate the standard deviation for X. (Do not round intermediate calculations.) |
| (Click to select)12.21%18.85%15.08%14.85%16.72% | |
| (b) | Calculate the standard deviation for Y. (Do not round intermediate calculations.) |
| (Click to select)34.19%42.74%32.79%27.70%36.66% |
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