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Use the following returns for X and Y. Returns Year X Y 1 21.6 % 25.8 % 2 – 16.6 – 3.6 3 9.6 27.8 4 19.2 – 14.2 5 4.6 31.8 a. Calculate the average returns for X and Y

Respuesta :

Answer:

For Average X = 7.68%

For Average Y = 13.52%

Explanation:

The computation of average return for X and Y is shown below:-

Average return = sum of return ÷ n

Year        X                   Y

1         21.60%            25.80%

2      -16.60%           -3.60%

3        9.60%             27.80%

4       19.20%            -14.20%

5      4.60%                31.80%

Total  38.40%            67.60%

Avg X = 38.40% ÷ 5

= 7.68%

Avg Y = 67.60% ÷ 5

= 13.52%

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