Use the following returns for Xand Y. Returns 28.2% -4.4 30.2 22.4% 10.4 20.8 5.
ID: 1171948 • Letter: U
Question
Use the following returns for Xand Y. Returns 28.2% -4.4 30.2 22.4% 10.4 20.8 5.4 -15.8 5 34.2 Calculate the average returns for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average returns 8.32 % 14.48 % Calculate the variances for X and Y. (Do not round intermediate calculations and round your answers to 6 decimal places, e.g., 32.161616.) Variances Calculate the standard deviations for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviations 9%Explanation / Answer
1) Average Return X 8.32% Y 14.48% 2) Variances X 0.020567 Y 0.041951 3) Standard Deviation X 14.34% Y 20.48% Working: X Year return Average return a b c d=(b-c)^2 1 22.4% 8.32% 0.019825 2 -17.4% 8.32% 0.066152 3 10.4% 8.32% 0.000433 4 20.8% 8.32% 0.015575 5 5.4% 8.32% 0.000853 Total 41.6% 0.102837 Working: Average Return = 41.6% / 5 = 8.32% Variance = 0.102837 / 5 = 0.020567 Standard Deviation = ? Variance = ?0.020567 = 14.34% Y Year return Average return a b c d=(b-c)^2 1 28.2% 14.48% 0.018824 2 -4.4% 14.48% 0.035645 3 30.2% 14.48% 0.024712 4 -15.8% 14.48% 0.091688 5 34.2% 14.48% 0.038888 Total 72.4% 0.209757 Working: Average Return = 72.4% / 5 = 14.48% Variance = 0.209757 / 5.000000 = 0.041951 Standard Deviation = ? Variance = ?0.041951 = 20.48%