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Unformatted text preview: X = (.020370) 1/2 = .1427 or 14.27% Y = (.081830) 1/2 = .2861 or 28.61% 9. a . To find the average return, we sum all the returns and divide by the number of returns, so: Average return = (.02 –.08 +.24 +.19 +.12)/5 = .0980 or 9.80% b . Using the equation to calculate variance, we find: Variance = 1/4[(.02 – .098) 2 + (–.08 – .098) 2 + (.24 – .098) 2 + (.19 – .098) 2 + (.12 – .098) 2 ] Variance = 0.01672 So, the standard deviation is: Standard deviation = (0.01672) 1/2 = 0.1293 or 12.93%...
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 Spring '10
 Yang
 Standard Deviation, Variance, The Return, average return

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