Problem 12-7 Calculating Returns and Variability [LO1]

Problem 12-7 Calculating Returns and Variability [LO1]

	Returns
Year	X			Y
1		12	%		18	%
2		26			27
3		12			10
4	–	19		–	24
5		10			18

  

Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Explanation The average return is the sum of the returns, divided by the number of returns. The average return for each stock was:

Thanks