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) |
||
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jeff jeffy answered 2 years agoRelated Solutions
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