# Calculating returns, variances, standard deviations for X and Y

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

https://brainmass.com/business/accounting/calculating-returns-variances-standard-deviations-for-x-and-y-3036

#### 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.

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