Two investments generated the following annual returns: 20X0 20X1 20X2 20X3 20X4 Investment X 13% 17 24 19 8 -Select- a. What is the average annual return on each investment? Round your answers to one decimal place. The average annual rate of return on X: The average annual rate of return on Y: b. What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places. % Standard deviation of X: Standard deviation of Y: c. Based on the standard deviation, which investment was riskier? was riskier. Investment 23% 26 14 25 20

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Two investments generated the following annual returns:
Investment X
13%
17
24
19
8
20X0
20X1
20X2
20X3
20X4
a. What is the average annual return on each investment? Round your answers to one decimal place.
The average annual rate of return on X:
The average annual rate of return on Y:
b. What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places.
-Select-
%
%
Standard deviation of X:
Standard deviation of Y:
c. Based on the standard deviation, which investment was riskier?
was riskier.
Investment Y
23%
26
14
25
20
Transcribed Image Text:Two investments generated the following annual returns: Investment X 13% 17 24 19 8 20X0 20X1 20X2 20X3 20X4 a. What is the average annual return on each investment? Round your answers to one decimal place. The average annual rate of return on X: The average annual rate of return on Y: b. What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places. -Select- % % Standard deviation of X: Standard deviation of Y: c. Based on the standard deviation, which investment was riskier? was riskier. Investment Y 23% 26 14 25 20
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