Question

Returns Year X Y 1 12% 25 % 2 28 34 3913 4 - 7 -27 5 10 14 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation as a percent rounded to 2 decimal places, e.g., 32.16, and round the variance to 5 decimal places, e.g., .16161.) Average return Variance Standard deviation

Please work this out the long way so I can see each step. I need to know how to do this for an exam, not excel.

Answer 1

returns deviation^2 deviation^2 12.0% 28.0% 9.0% -7.0% 10.0% 10.40% 25.0% 34.0% 13.0% -27.0% 14.00% 11.80% deviation (returns-average) 1.60% 17.60% -1.40% -17.40% -0.40% variance = 0.0256% 3.0976% 0.0196% 3.0276% 0.0016% 0.01543 deviation (returns-average) 13.20% 22.20% 1.20% -38.80% 2.20% variance = 1.7424% 4.9284% 0.0144% 15.0544% 0.0484% 0.05447 average return standard deviation = variance^0.5 12.42% standard deviation = 23.34% Arithmetic average Variance Standard deviation х 10.40% 0.01543 12.42% 11.80% 0.05447 23.34%