Explore BrainMass

Explore BrainMass

    Calculating returns, variances, standard deviations for X and Y

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Using the following returns, calculate the average returns, the variances, and the standard deviations for X and Y.

    See attached spreadsheet for the data.

    Prob #7
    RETURNS
    Year X Y
    1 10% 26%
    2 18 -4
    3 -8 -10
    4 12 42
    5 6 21

    © BrainMass Inc. brainmass.com June 3, 2020, 4:45 pm ad1c9bdddf
    https://brainmass.com/business/accounting/calculating-returns-variances-standard-deviations-for-x-and-y-3036

    Attachments

    Solution Preview

    Please refer to attached.

    RETURNS
    Year X Y
    1 10% 26%
    2 18 -4
    3 -8 -10
    4 12 42
    5 6 21

    Step 1
    Work out average return for each stock, from Year 1 to Year 5.

    Average (RX) = (10 + 18 - 8 + 12 + 6) / 5
    = 7.6%

    Average ...

    Solution Summary

    The solution shows the formulas and the calculations to solve the questions in the problem.

    $2.19

    ADVERTISEMENT