Calculating Returns and Variablity.

Using the following returns, calcuate the average returns, the variances, and the standard deviations of X and Y:

Number 7 in the attached photo

youl olll lls Investmen yeal a8 a. Assuming a $1,000 face value, what.was over the past year? b. What was your total nominal rate of return on this investment ov c. If the inflation rate last year was 3 percent, what was your total real rate o the past year? this investment? return 5. Nominal versus Real Returns What was the arithmetic average annual re large-company stocks from 1926 through 2014? a. In nominal terms? b. In real terms? ds? On What is the historical real return on long-term government bon Bond Returns long-term corporate bonds? 6. Variability Using the following returns, calculate the 7. Calculating Returns and average returns, the variances, and the standard deviations for X and Y Returns Year 9% 21 27 I5 23 12% 27 32 3 4 36