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 % | 23 % |
| 2 | 25 | 44 |
| 3 | 14 | -9 |
| 4 | -15 | -23 |
| 5 | 16 | 52 |
| Requirement 1: | |
| (a) | Calculate the arithmetic average return for X. |
| (Click to select)10.62%11.75%11.47%9.40%7.61% | |
| (b) | Calculate the arithmetic average return for Y. |
| (Click to select)14.09%17.40%21.75%19.66%21.23% |
| Requirement 2: | |
| (a) | Calculate the variance for X. (Do not round intermediate calculations.) |
| (Click to select)0.0279500.0227300.0223600.0184110.028412 | |
| (b) | Calculate the variance for Y. (Do not round intermediate calculations.) |
| (Click to select)0.1066300.0996140.0863700.1245180.133287 |
| Requirement 3: | |
| (a) | Calculate the standard deviation for X. (Do not round intermediate calculations.) |
| (Click to select)15.08%16.72%14.85%18.85%12.21% | |
| (b) | Calculate the standard deviation for Y. (Do not round intermediate calculations.) |
| (Click to select)26.45%32.65%40.82%31.56%35.29% |
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