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 11

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.

Returns
Year X Y
1 11 % 23 %
2 29 44
3 18 -12
4 -19 -26
5 20 52

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.

(b) Calculate the variance for Y
Requirement 3:
(a)

Calculate the standard deviation for X

(b)

Calculate the standard deviation for Y

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!