Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.

Calculate the arithmetic average return for both stocks. (5 points)
Calculate the variance and standard deviation. (5 points)
Compare and contrast the standard deviations of the two stocks. What do the numbers tell you? Which stock is riskier based on your calculation? (5 points)

Year	Return of stock:
Year	You-Be, Inc.	Zee Corp.
1	12%	25%
2	28%	-34%
3	9%	13%
4	-7%	27%
5	10%	14%

Expert Solution

jeff jeffy answered 2 years ago

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 11 % 23 % 2 29 44 3 18 -11 4 -19 -25 5 20 52 Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 11 % 23 % 2 29 44 3 18 -11...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 11 % 23 % 2 29 44 3 18 -11 4 -19 -25 5 20 52 Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 11 % 23 % 2 29 44 3 18 -11...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 15 % 22 % 2 33 43 3 22 -9 4 -23 -23 5 24 51 Calculate the arithmetic average return for X. Calculate the arithmetic average return for Y. Calculate the variance for X. Calculate the variance for Y. Calculate...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 11 % 20 % 2 29 41 3 18 -12 4 -19 -26 5 20 49 Requirement 1: (a) Calculate the arithmetic average return for X. (b) Calculate the arithmetic average return for Y. Requirement 2: (a) Calculate the variance for X. (Do not round intermediate calculations.) (b) Calculate the variance for Y. (Do not round...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 11 % 20 % 2 29 41 3 18 -12 4 -19 -26 5 20 49 Requirement 1: (a) Calculate the arithmetic average return for X. (b) Calculate the arithmetic average return for Y. Requirement 2: (a) Calculate the variance for X....

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 13% 23% 2 31 44 3 20 -10 4 - 21 - 24 5 22 52

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 12 % 21 % 2 30 42 3 19 -8 4 -20 -22 5 21 50 Requirement 1: (a) Calculate the arithmetic average return for X. (Click to select)10.04%12.40%15.13%14.01%15.50% (b) Calculate the arithmetic average return for Y. (Click to select)16.60%20.75%13.45%20.25%18.76% Requirement 2:...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 10 % 23 % 2 28 44 3 17 -11 4 -18 -25 5 19 52 Requirement 1: (a) Calculate the arithmetic average return for X. (Click to select)13.66%14.00%11.20%12.66%9.07% (b) Calculate the arithmetic average return for Y. (Click to select)16.60%13.45%18.76%20.25%20.75% Requirement 2:...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 7 % 22 % 2 25 43 3 14 -7 4 -15 -21 5 16 51 Requirement 1: (a) Calculate the arithmetic average return for X. (b) Calculate the arithmetic average return for Y. Requirement 2: (a) Calculate the variance for X. (Do not round intermediate calculations.) (b) Calculate the variance for Y. (Do not round...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 12 % 20 % 2 30 41 3 19 -7 4 -20 -21 5 21 49 Requirement 1: (a) Calculate the arithmetic average return for X. (Click to select)10.04%15.13%15.50%12.40%14.01% (b) Calculate the arithmetic average return for Y. (Click to select)13.28%16.40%20.50%20.01%18.53% Requirement 2:...

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Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

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