Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. x: 13 0 22 33 20 27 19 −20 −13 −10 y: 16 −5 25 21 23 20 15 −7 −4 −2 (a) Compute Σx, Σx2, Σy, Σy2. Σx Σx2 Σy Σy2 (b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and for y. (Round your answers to two decimal places.) x y x s2 s (c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.) x y Lower Limit Upper Limit Use the intervals to compare the two funds.
from above:
a)
Σx=91,
Σx2=3901,
Σy=102,
Σy2 =2570
b)
for x:
sample mean=9.1,
variance=341.43
and standard deviation =18.48
for y:
sample mean=10.2
variance=169.96
and standard deviation =13.04
c)
from Chebychev: 75% around the mean for x =9.1-/+2*18.48 =-27.86 ; 46.06
from Chebychev: 75% around the mean for Y =10.2-/+2*13.04 =-15.88 ; 36.28
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable...
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. x: 30 0 17 38 38 34 25 −16 −22 −22 y: 10 −4 16 14 20 20 20 −8 −1 −6 (a) Compute Σx,...
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. x: 26 0 26 32 23 29 32 −23 −15 −24 y: 9 −10 20 23 23 17 17 −8 −10 −7 a. Use the...
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute a 75% Chebyshev interval around the mean for x-values and also for y-values. Round your answers to the nearest hundredth. x: 13 0...
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. 15 0 38 21 31 23 24 -15 -15 -21 6 -4 28 18 22 17 18 -4 -5 -6 The sample means...
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute the coefficient of variation for each fund. Round your answers to the nearest tenth. x: 13 0 38 23 35 25 26 -13...
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute the coefficient of variation for each fund. Round your answers to the nearest tenth. -13 -3 -16 -7 130 38 23 35 25...
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Shock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compare Question 7 Not yet answered Points out of 4.00 P Flag question Do bonds reduce the overall risk of an investment portfolio? Let...
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute . 12 0 39 23 31 25 26 -12 -12 -23 9 -3 26 15 24 17 15 -3 -4 -9
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