Using the following returns, calculate the average returns, the variances, and the standard deviations for X and Y. Return Year X Y
Return
Year X Y
1 14% 32%
2 21 5
3 17 17
4 9 -12
5 23 45
Pleas Word o Excel
Expert Answer
Following are to be noted :
Average return = ( Return for X + Return for Y ) / 2
Variance = ( Return for X – Average return ) ^2 + ( Return for Y – Average return)^2
Standard Deviation = Square root ( Variance )
Based on above formula , following table presents average return, Variance and Standard deviation for all 5 years :
Year
Average return (%)
Variance
Standard deviation
1
( 14 + 32)/2 = 23
(23-14)^2
OR
PayPal Gateway not configured
OR
PayPal Gateway not configured