Question: Please provide me with excel formulas to calculate standard deviations and coefficient of correlations for these homework 3. Now calculate the standard deviations and coefficients

Please provide me with excel formulas to calculate standard deviations and coefficient of correlations for these homework

3. Now calculate the standard deviations and coefficients of variation of returns for the four alternatives. What type of risk do these

statistics measure? Is the standard deviation or the coefficient of variation the better measure? How do the alternatives compare when risk

is considered?

Standard deviation measures the dispersion of an investment's return around the expected return.

The coefficient of variation is a statistical measure of relative dispersion that can be used to compare the risks of assets with different expected returns.

1-Year Exp Deviation Deviation Summation Standard

Coefficient of

State of Economy Probability T-Bond Returns Squared Deviation Deviation Variation
Recession 0.1 0.08 0.08 0 0 0
Below Average 0.2 0.08 0.08 0 0 0
Average 0.4 0.08 0.08 0 0 0
Above Average 0.2 0.08 0.08 0 0 0
Boom 0.1 0.08 0.08 0 0 0
Total 1 0 0 0
Average
Standard Deviation 0 Coefficient of Variation 0
Exp Deviation Deviation Summation Standard

Coefficient of

State of Economy Probability TECO Returns Squared Deviation Deviation Variation
Recession 0.1 -0.08 0.135 -0.215 0.046225 0.0046225
Below Average 0.2 0.02 0.135 -0.115 0.013225 0.002645
Average 0.4 0.14 0.135 0.005 0.000025 0.00001
Above Average 0.2 0.25 0.135 0.115 0.013225 0.002645
Boom 0.1 0.33 0.135 0.195 0.038025 0.0038025
Total 1 0.013725 0.1171537451 0.8678055195
Average
Standard Deviation 0.1171537451 Coefficient of Variation 0.8678055195
Exp Deviation Deviation Summation Standard

Coefficient of

State of Economy Probability Gold Hill Returns Squared Deviation Deviation Variation
Recession 0.1 0.18 0.088 0.092 0.008464 0.0008464
Below Average 0.2 0.23 0.088 0.142 0.020164 0.0040328
Average 0.4 0.07 0.088 -0.018 0.000324 0.0001296
Above Average 0.2 -0.03 0.088 -0.118 0.013924 0.0027848
Boom 0.1 0.02 0.088 -0.068 0.004624 0.0004624
Total 1 0.008256 0.09086253353 1.03252879
Average
Standard Deviation 0.09086253353 Coefficient of Variation 1.03252879
Exp Deviation Deviation Summation Standard

Coefficient of

State of Economy Probability S&P 500 Returns Squared Deviation Deviation Variation
Recession 0.1 -0.15 0.15 -0.3 0.09 0.009
Below Average 0.2 0 0.15 -0.15 0.0225 0.0045
Average 0.4 0.15 0.15 0 0 0
Above Average 0.2 0.3 0.15 0.15 0.0225 0.0045
Boom 0.1 0.45 0.15 0.3 0.09 0.009
Total 1 0.027 0.1643167673 1.095445115
Average
Standard Deviation 0.1643167673 Coefficient of Variation 1.095445115

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