Mathematics, 17.06.2020 22:57 lilkassrocks
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data.
x: 17 0 17 28 28 27 29 −12 −12 −13
y: 14 −2 27 18 20 11 14 −2 −3 −10
A) Compute ∑x, ∑x2, ∑y, ∑y2
B) Use the results of part (a) to compute the sample mean, variance, and standard
deviation for x and for y.
C) Compute a 75% Chebyshev interval around the mean for x values and also for
y values. Use the intervals to compare the two funds.
D) Compute the coefficient of variation for each fund. Use the coefficients of variation
to compare the two funds. If s represents risks and image from custom entry tool represents expected return, then image from custom entry tool can be thought of as a measure of risk per unit of expected return. In this case, why is a smaller CV better? Explain.
Answers: 2
Mathematics, 21.06.2019 17:30, bandithcarroyuqhi
Arecipe uses 2 cups of sugar to make 32 brownies. how many cups of sugar are needed to make 72 brownies?
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Mathematics, 22.06.2019 00:00, bracefacer42
The data set represents the ages of players in a chess club. 27, 34, 38, 16, 22, 45, 54, 60. what is the mean absolute deviation of the data set?
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Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing...
Mathematics, 05.11.2020 05:30
Mathematics, 05.11.2020 05:30
Mathematics, 05.11.2020 05:30
Mathematics, 05.11.2020 05:30