Use the following returns for X and Y. Returns Year X Y 1 14 % 32 % 2 – 21 – 5 3
ID: 2764134 • Letter: U
Question
Use the following returns for X and Y. Returns Year X Y 1 14 % 32 % 2 – 21 – 5 3 17 17 4 9 – 12 5 23 45 Requirement 1: Calculate the average returns for X and Y. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Average returns X % Y % Requirement 2: Calculate the variances for X and Y. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 6 decimal places (e.g., 32.161616).) Variances X Y Requirement 3: Calculate the standard deviations for X and Y. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Standard deviations X % Y %
Explanation / Answer
Year Return X=Rx Return Y=Ry (Rx-average Return)^2 (Ry-average Return)^2 1 14.00% 32.00% 0.003136 0.02789 2 -21.00% -5.00% 0.086436 0.04121 3 17.00% 17.00% 0.007396 0.00029 4 9.00% -12.50% 0.000036 0.07728 5 23.00% 45.00% 0.021316 0.08821 Total = 42.00% 76.50% 0.118320 0.23488 Average Return= 8.40% 15.30% 0 Population Variance =Sum/5 0.02366 0.04698 Population Std Deviation= Sq Root Variance= 15.38% 21.67% Sample Variance =Sum/4= 0.029580 0.058720 Sample Std Deviation =SqRoot Variance 17.20% 24.23%