Mary received the following annual returns from her investment:

Year 1  6.3%

Year 2   -3.4%

Year 3   19.0%

Year 4   11.5%

Calculate the Variance of returns. (the answer should be 88.54)

 

2. Donald received the following annual returns from his investment:

Year 1  8.9%

Year 2   -4.2%

Year 3   17.7%

Year 4   9.0%

Calculate the Standard deviation of returns. (should be 9.03%)

 

3. Calculate the variance of return, given annual returns of:

Year 1  6.1%

Year 2   3.1%

Year 3   -6.8%

Year 4   11.6%

Year 5    4.0%

 

4. Calculate the standard deviation of return, given annual returns of:

Year 1  5.5%

Year 2   4.7%

Year 3   -13.2%

Year 4   7.0%

Year 5    9.6%

Answer rating: 100% (QA)

1 To calculate the variance of the returns we need to first calculate the mean return Mean return 63 34 190 115 4 835 Next we calculate the deviation of each years return from the mean Year 1 63 835 2... View the full answer