Problem 12-7 Calculating Returns and Variability [LO1] Year 1234 5 Returns X 18% 21 12 -14 10 Y 15% 33 14 -19 23 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16, and round the variance answers to 5 decimal places, e.g., .16161.) Average returns Variances Standard deviations Answer is not complete. Y 13.20 % X 9.40 % 114.41000 X 10.70 X % 10.47 X %

Problem 12-7 Calculating Returns and Variability [LO1] Year 1234 5 Returns X 18% 21 12 -14 10 Y 15% 33 14 -19 23 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16, and round the variance answers to 5 decimal places, e.g., .16161.) Average returns Variances Standard deviations Answer is not complete. Y 13.20 % X 9.40 % 114.41000 X 10.70 X % 10.47 X %

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter12: Capital Structure

Section: Chapter Questions

Problem 6PROB

See similar textbooks

Similar questions

Returns Year X y 1 17 % 20 % 2 20 32 3 11 15 4 – 7 – 18 5 10 22 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.
Part a State Pr(a) ra Pr(b) rb 1 0.2 10% 0.25 12% 2 0.6 15% 0.40 20% 3 0.2 20% 0.35 18% Given the probability distribution above, determine (Calculate) and compare the: Expected return (means) Variance Standard deviation Part b How important is risk to returns and what are the key elements that must be analyzed in this regard before an investment decision is made? Discuss in no more than 200 words.
10.7 Calculating Returns and Variability Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y: Returns Year X Y 1 12% 14% 2 24 29 3 -27 -33 4 14 17 5 19 37
Problem 10-7 Calculating Returns and Variability [LO 1] Use the following returns for X and Y. Year 1 2 3 4 5 Returns 21.6% -16.6 9.6 19.2 4.6 Y 25.8% -3.6 27.8 -14.2 31.8 a. Calculate the average returns for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the variances for X and Y. Note: Do not round intermediate calculations and round your answers to 6 decimal places, e.g., .161616. c. Calculate the standard deviations for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a. Average return b. Variance c. Standard deviation. X % % %
Use the following returns for X and Y. Year 12345 Returns X 21.6% -16.6 9.6 19.2 4.6 Y 25.8% -3.6 27.8 -14.2 31.8 a. Calculate the average returns for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a. Average return b. Variance c. Standard deviation b. Calculate the variances for X and Y. Note: Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616. c. Calculate the standard deviations for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. X % % % %
Problem 10-7 Calculating Returns and Variability [LO 1] Use the following returns for X and Y. Year 1 2 3 4 5 Returns X 21.2% -16.2 9.2 18.4 4.2 Y 24.6% -3.2 26.6 -13.4 30.6 a. Calculate the average returns for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the variances for X and Y. Note: Do not round intermediate calculations and round your answers to 6 decimal places, e.g., .161616. c. Calculate the standard deviations for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a. Average return b. Variance c. Standard deviation X 7.36% % Y 13.04 % %
Use the following returns for X and Y. Returns Year X Y 1 22.7 % 29.1 % 2 – 17.7 – 4.7 3 10.7 31.1 4 21.4 – 16.4 5 5.7 35.1 a. Calculate the average returns for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the variances for X and Y. (Do not round intermediate calculations and round your answers to 6 decimal places, e.g., 32.161616.) c. Calculate the standard deviations for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
1. Lemon, a scooter rental company, is currently evaluating two mutually exclusive investments. After doing a scenario analysis and applying probabilities to each scenario, it has determined that the investments have the following distributions around the expected NPVS. Probability NPVA NPV, 10% -$59,670 -$2,377 20% -14,918 3,729 40% 29,835 29,835 20% 74,588 55,941 10% 119,340 82,047 Several members of the management team have suggested that Project A should be selected because it has a higher potential NPV. Other members have suggested that Project B appears to be more conservative and should be selected. They have asked you to resolve this question. a. Calculate the expected NPV for both projects. Can the question be resolved with this information alone? b. Calculate the variance and standard deviation of the NPVS for both projects. Which project appears to be riskier? c. Calculate the coefficient of variation for both projects. Does this change your opinion from part b? d. Calculate…
Su 2 The standard deviation of return on investment A is 19%, while the standard deviation of return on investment B is 14%. If the covariance of returns on A and B is 0.004, the correlation coefficient between the returns on A and B is 00:05:46 臺 Mc Graw Hill Delivery co ler.
Example 3 Inns oont alafrA Following Example 2, consider a porfolio with three assets S1, S2 and S3 which have expected rates of return 0.1,0.15 and 0.2 respectively, and variance-covariance matrix odni tanoma bszt a aitevi ot botoly 0.1 0.1 -0.1 0.1 0.2 0.1 ololles V = -0.1 0.1 0.6 vo ) isaas sod slais a at gaiteoo ottg ndi oda vodT (aldanoitesup als ot-lais wod ibuadala abnod on a) What is the optimal portfolio when up = worod of sidad = 0.2. adt yhalinie ini ba moe ja SOLUTION lo ano ot b) Use this piece of information and the earlier optimal portfolios from la aao e. Example 2 to find the quadratic equation relating of and up. ni bstni sd SOLUTION tar oad o bo s e) Hence draw a plot of the solutions, and identify the frontier port- Ldon to slar folios. it SOLUTION ods Btvni gatela dt
Exercise 10.09 Algo (Inferences About the Difference Between Two Population Means: Sigmas Unknown) « Question 9 of 13 > Consider the following results for independent random samples taken from two populations. Sample 1 Sample 2 n1 = 10 n2 = 30 71 = 22.6 E2 = 20.7 81 = 2.5 82 = 4.4 a. What is the point estimate of the difference between the two population means (to 1 decimal)? b. What is the degrees of freedom for the t distribution (round the answer to the previous whole number)? c. At 95% confidence, what is the margin of error (to 1 decimal)? d. What is the 95% confidence interval for the difference between the two population means (to 1 decimal and enter negative value as negative number)? 0= Icon Key
7. Calculating Returns and Variability. Using the following returns, calculate the average returns, the variances, and the standard deviations for X and Y. LO 1 Returns Year Y. 16% 36% -17 - 8 13 21 15 -15 24 39 12345