Question
In: Finance
During the past 10 years, the percent returns on two mutual funds (aggressive and passive) expressed...
During the past 10 years, the percent returns on two mutual funds (aggressive and passive) expressed in percentages were as follows:
| Year | Aggressive Fund | Passive Fund |
|---|---|---|
| -10 | 0% | 3% |
| -9 | 6% | 4% |
| -8 | 0% | 4% |
| -7 | 3% | 2% |
| -6 | 8% | 3% |
| -5 | 0% | 3% |
| -4 | 5% | 4% |
| -3 | 1% | 2% |
| -2 | 1% | 4% |
| Last Year | 4% | 4% |
Note that this is a sample of returns.
a) Compute the expected return for the two funds. Round your answers to two decimal places.
Aggressive =
Passive =
b) Compute the variance and standard deviation of the returns of the two funds. Round your answers to two decimal places.
Variance:
Aggressive =
Passive =
Standard Deviation:
Aggressive = %
Passive = %
Solutions
jeff jeffy answered 2 years agoRelated Solutions
During the past 10 years, the percent returns on two mutual funds (aggressive and passive) expressed...
During the past 10 years, the percent returns on two mutual
funds (aggressive and passive) expressed in percentages were as
follows:
Year
Aggressive Fund
Passive Fund
-10
1%
3%
-9
8%
2%
-8
1%
3%
-7
2%
3%
-6
6%
4%
-5
2%
2%
-4
6%
4%
-3
1%
2%
-2
2%
2%
Last Year
4%
3%
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29.28%
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Beta
R 2
1
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1.10
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1.42
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14.82
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PLEASE SHOW WORK
What is the variance of returns if over the past three years an
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percent?
112
196
265
131
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