{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# CH10 - .128 or 12.8 Variance Y =.15108(5-1 =.03777 STD X =...

This preview shows page 1. Sign up to view the full content.

7. X Year Actual Return Average Return Deviation Squared Deviation 1 .21 .072 .138 .01904 2 -.16 .072 -.232 .05382 3 .09 .072 .018 .00032 4 .18 .072 .108 .01166 5 .04 .072 -.032 .00102 Sum = .08588 Y Year Actual Return Average Return Deviation Squared Deviation 1 .24 .128 .112 .01254 2 -.03 .128 -.158 .02496 3 .26 .128 .132 .01742 4 -.13 .128 -.258 .06656 5 .30 .128 .172 .02958 Sum = .15108 Average Return X = (.21-.16+.09+.18+.04)/5 = 0.72 or 7.2% Variance X = .8588/(5-1) = 0.02147 STD. X = Square root of 0.02147 = .1465 or 14.65% Average Return Y = ( .24-.03+.26-.13+.30)/5 =
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: .128 or 12.8% Variance Y = .15108/(5-1) = .03777 STD. X = Square root of .03777 = .1943 or 19.43% 9. Year Actual Return Average Return Deviation Squared Deviation 1-.24 .082-.322 .10368 2 .13 .082 .048 .00230 3 .29 .082 .208 .04326 4 .02 .082-.062 .00384 5 .21 .082 .128 .01638 Sum = .16948 a. Average Return = ( -.24+.13+.29-.02+.21)/5 = .082 or 8.2% b. Variance = .16948/(5-1) = .04237 STD. = Square root of .04237 = .20584 or 20.58%...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online