Two investments generated the following annual returns: a. What is the average annual return on each investment?

Question:

Two investments generated the following annual returns:

a. What is the average annual return on each investment?
b. What is the standard deviation of the return on investments X and Y?
c. Based on the standard deviation, which investment was riskier?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Basic Finance An Introduction to Financial Institutions Investments and Management

ISBN: 978-1111820633

10th edition

Authors: Herbert B. Mayo

See More Books

Question Posted: Mar 19, 2015 09:24 AM

See More Questions

The graph of a quadratic equation in x and y can, in certain cases, be a point, a line, or a pair of lines. These are called degenerate conics. It is also possible that the equation is not satisfied...
What is the average arithmetic return over two years for a stock that goes from $10 to $20, then back to $10?
a) Which project is least risky, judging on the basis of range? b) Which project has the lowest standard deviation? Explain why standard deviation may not be an entirely appropriate measure of risk...
This question is optional and will not be graded. We are interested in examining factors determining women's labor force participation. Use the data set mroz. dta and the do file ps5.2. do to answer...
Steel is an alloy of iron and nickel. A steel recycling company has two piles of scrap steel. Pile A contains steel with 5.25% nickel content. Pile B contains steel with 2.84% nickel. The company has...
Do you think payday loan businesses should be allowed to operate? If you were the deciding vote in your city council to allow or ban these services in your city, how would you vote and why? Think...
In life testing, we are sometimes interested in establishing tolerance limits for the life of a component in particular, we may be interested in a one-sided tolerance limit $t^{*}$, for which we...
Suppose the demand function for a firms product is given by In Qdx = 3 0.5 In Px 2.5 In Py + In M + 2 In A where Px = $10, Py = $4, M = $20,000, and A = $250. a. Determine the own price elasticity...
Without invoking Java, given the following Java program fragment Scanner console new Scanner (System.in); int int 12 count: int evenSum int oddSum; 107 evenSum odds um 0; 0: for (count...
Determine expressions for the mean residence time given "outward" diffusional release into a perfect sink from a) A cylindrical monolithic device of radius a, with ends capped. b) A spherical device...
Consider a $30,000 portfolio consisting of three stocks. Their values and expected returns are as follows: What is the weighted-average expected return on the portfolio? Investment 5,000 10,000...
You expect to invest your funds equally in four stocks with the following expected returns: Stock Expected Return A........ 16% B........ 14 C........ 10 D........ 8 At the end of the year, each...
The visual test for association requires you to compare several plots. One has the original data, and the others show the data with scrambled coordinates. Would it help in finding the original if...
i) Which species is being oxidized , Which species is being reduced ) Which species is the oxidizing agent CH3CHO (aq) + H2 (g) - CHaCH2OH (aq)
a) Use the Product Rule to find the derivative of the given function. b) Find the derivative by multiplying the expressions first. y= (5x+3)x a) Use the Product Rule to find the derivative of the...
You perform LPCVD of polysilicon using SiH4 at 610 C with a pressure of 300 mtorr and a gas flow rate of 90 sccm. The resulting highly conformal deposition has a rate of 6.4 nm/min. 4-1. What is the...
Q5. Let X be the space of all real polynomials of one variable with |||| S|f(t)\dt. = Put B(f,g) = f f (t)g(t)dt. Show that B is a bilinear form on X which is separately continuous but not jointly...
IssueTracking System (ITS) Description An Issue Tracking System (ITS) isa computer software application that manages and maintains lists ofissues, as needed by departments of an organization to help...
An output program resides in memory starting from address 2300. It is executed after the computer recognizes an interrupt when FGO becomes a 1 (while IEN = 1). a. What instruction must be placed at...
Express these numbers in standard notation. a. 2.87 10-8 b. 1.78 1011 c. 1.381 10-23
Greasy Patties Corporation, a hamburger chain, has 100 stores. In its tenth year of operating, its total sales for year 10 amounted to $$100$ million. During year 11, Greasy Patties Corporation...
A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 6 percent on this savings. How much will she have accumulated if she retires at age 65? At...
Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan and wants to know how much she must invest at the end of each year for the next 18 years if the funds can...
A widow currently has a $93,000 investment that yields 6 percent annually. Can she withdraw $14,000 for the next ten years? Would your answer be different if the yield were 9 percent?
Work out which number line below shows the values that x can take if 3 x 2. - A +12345678910 8 9 10 B D 5 6 7 8 9 10 6 7 8 E 2 F 3 4 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Application Case Coffee Shop is a company dedicated to the commercialization of "signature coffee", a category of high quality coffee that is grown, processed and prepared with a high degree of...
The issuing company Zapatos y Bolsas Veloz, SAB de C.V., dedicated to the manufacture and sale of vinyl leather bags for more than 25 years under the Bolsas Finas brand, the company obtained in the...

Two investments generated the following annual returns: a. What is the average annual return on each investment?

Question:

Investment X Investment Y 19X0 19X1 19X2 19X3 19X4 10% 20 30 20 10 16% 18 15 20 21

Step by Step Answer:

a The average annual rate of return on X 10 20 20 30 20 105 1...View the full answer

Basic Finance An Introduction to Financial Institutions Investments and Management

Students also viewed these Accounting questions