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 8
| Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. |
| Returns | ||
| Year | X | Y |
| 1 | 8 % | 18 % |
| 2 | 26 | 39 |
| 3 | 15 | -12 |
| 4 | -16 | -26 |
| 5 | 17 | 47 |
| Requirement 1: | |
| (a) | Calculate the arithmetic average return for X. |
| (Click to select)12.50%12.20%8.10%10.00%11.30% | |
| (b) | Calculate the arithmetic average return for Y. |
| (Click to select)16.10%14.92%16.50%10.69%13.20% |
| Requirement 2: | |
| (a) | Calculate the variance for X. (Do not round intermediate calculations.) |
| (Click to select)0.0315630.0252500.0249270.0311580.020453 | |
| (b) | Calculate the variance for Y. (Do not round intermediate calculations.) |
| (Click to select)0.0882920.1250880.0810570.1000700.110364 |
| Requirement 3: | |
| (a) | Calculate the standard deviation for X. (Do not round intermediate calculations.) |
| (Click to select)15.89%17.65%12.87%15.69%19.86% | |
| (b) | Calculate the standard deviation for Y. (Do not round intermediate calculations.) |
| (Click to select)33.22%39.54%25.62%31.63%29.71% |
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