Question

In: Finance

Two investments generated the following annual returns: Investment X 11 % 25 % 20% 23% 10%...

Two investments generated the following annual returns:

Investment X 11 % 25 % 20% 23% 10%

Investment Y: 18 %24% 11% 13% 14%

What is the average annual return on each investment? Round your answers to one decimal place.

The average annual rate of return on X: %

The average annual rate of return on Y: %

What is the standard deviation of the return on investments X and Y?

Round your answers to two decimal places.

Standard deviation of X:

Standard deviation of Y:

Based on the standard deviation, which investment was riskier?

Solutions

Expert Solution

Calculations-

Note-
Average Return = Sum of returns/ No. of years
Variance = Sum of (Return - Avg return )^2 /(No. of years -1)

Standard deviation = Squareroot (Variance)

Please upvote if the ans is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 2 years ago
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