1) Calculate the average returns,variances, & the standarddeviationsfor X and Y. For average return and s.d. (Input answers rounded to 2 decimal places. For variance round answers to 4 decimal places).
Returns
Year X Y
1 20 % 21 %
Carib and Heinekin have reported the returns on small company stocks and U.S. Treasury bills for the period 1986 - 1991 as follows
Year small company stocks u.s treasury bills
1986 6.85% 6.1
Four symmetrical distributions, labeled (a), (b), (c), and (d), are represented below by their histograms. Without performing any calculations, order the respective standards deviations σ_a, σ_b ,σ_c , and σ_d of the distributions.
A
X X
X X X X
X X
9. Calculating Returns and Variability You've observed the following returns on Mary Ann Data Corporation's stock over the past five years: 216 percent, 21 percent, 4 percent, 16 percent, and 19 percent.
a. What was the arithmetic average return on Mary Ann's stock over this five-year period?
b. What was the variance of Mary A
When comparing two projects with different returns and different standarddeviations, the risk measure which can be used is called the
a. variance.
b. certainty equivalent.
c. coefficient of correlation.
d. coefficient of variation.
Two Stocks, X and Y, have three states of nature based on the state of the economy:
State of Economy Probability Stock X Return Stock Y Return
Recession 0.10 -0.20 0.30
Normal 0.60 0.10
1. Using the data in the attached file, prepare a schedule of total standard manufacturing costs for the 7,800 output units in January 2012.
2. For the month of January 2012, compute the following variances, indicating whether each is favorable (F)
or unfavorable (U):
a. Direct materials price variance, based on purchases
b.
Use the following historical data over the 1926-2000 period to answer the following question.
Asset Average Return Standard Deviation
Large-company stocks 13.0% 20.2%
Small-company stocks 17.3% 33.4%
Long term governmen
