Question: Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 7
| Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. |
| Returns | ||
| Year | X | Y |
| 1 | 7 % | 24 % |
| 2 | 25 | 45 |
| 3 | 14 | -12 |
| 4 | -15 | -26 |
| 5 | 16 | 53 |
| Requirement 1: | |
| (a) | Calculate the arithmetic average return for X. |
| (b) | Calculate the arithmetic average return for Y. |
| Requirement 2: | |
| (a) | Calculate the variance for X. (Do not round intermediate calculations.) |
| (b) | Calculate the variance for Y. (Do not round intermediate calculations.) |
| Requirement 3: | |
| (a) | Calculate the standard deviation for X. (Do not round intermediate calculations.) |
| (b) | Calculate the standard deviation for Y. (Do not round intermediate calculations.) |
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