During the past 10 years, the percent returns on two mutual funds (aggressive and passive) expressed in
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Question:
During the past 10 years, the percent returns on two mutual funds (aggressive and passive) expressed in percentages were as follows:
| Year | Aggressive Fund | Passive Fund |
| -10 | 0% | 4% |
| -9 | 6% | 4% |
| -8 | 0% | 4% |
| -7 | 1% | 2% |
| -6 | 7% | 2% |
| -5 | 2% | 4% |
| -4 | 9% | 2% |
| -3 | 2% | 3% |
| -2 | 0% | 3% |
| Last Year | 3% | 4% |
Note that this is a sample of returns.
a) Compute the expected return for the two funds. Round your answers to two decimal places.
Aggressive =
Passive =
b) Compute the variance and standard deviation of the returns of the two funds. Round your answers to two decimal places.
Variance:
Aggressive =
Passive =
Standard Deviation:
Aggressive = %
Passive = %
Expert Answer:
a The expected return of each fund can be calculated by finding the average return over the 10year p... View the full answer
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