- #1
cyod22
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1. do bonds reduce the overall risk of an investment portfolio? let x be a random variable representing annual % return for Vangaurd Total Stock Index (all stocks). Let y be a random variable representing annual return for Vangaurd Balanced Index(60% stock and 40% bond). For the past several years we have the following data.
x: 11 0 36 21 31 23 24 -11 -11 -21
y: 10 -2 29 14 22 18 14 -2 -3 -10
a.) Compare Ex, Ex2, Ey and Ey2 (2 = squared)
b.) use results in part (a) to compute the sample mean, variance, and standard deviation for x and for y.
c.) Compute a 75 % Chebyshev interval about the mean for x values and also for y values. Use interval to compare funds.
I was able to do part a & b but have no idea what they want for c. i do have the answer but i am not sure what they used to get the answer.
x: 11 0 36 21 31 23 24 -11 -11 -21
y: 10 -2 29 14 22 18 14 -2 -3 -10
a.) Compare Ex, Ex2, Ey and Ey2 (2 = squared)
b.) use results in part (a) to compute the sample mean, variance, and standard deviation for x and for y.
c.) Compute a 75 % Chebyshev interval about the mean for x values and also for y values. Use interval to compare funds.
I was able to do part a & b but have no idea what they want for c. i do have the answer but i am not sure what they used to get the answer.