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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%

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

Expert Solution

ANSWER IN THE IMAGE ((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE. THUMBS UP PLEASE.

Stock A= Aggressive Fund

Stock B= Passive Fund

jeff jeffy answered 2 years ago
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