Calculating Returns and Variability

Returns:

Year X Y

1 17% 20%

2 20 32

3 11 15

4 -7 -18

5 10 22

Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.

X Y

Average Return 10.2% 14.2%

Variance

Standard Deviation