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grigory [225]
3 years ago
5

Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for t

he Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. x: 14 0 39 25 32 27 28 14 14 15 y: 6 2 29 17 26 17 17 2 3 5 Compute the coefficient of variation for each fund. Round your answers to the nearest tenth.
Mathematics
1 answer:
rjkz [21]3 years ago
6 0

Answer:

COV (all stocks) = 0.55

COV (stocks and bonds) = 0.82

Step-by-step explanation:

Coefficient of Variation is used to measure variability.

It is defined as the ration of standard deviation and the mean.

It can be used to compare variability of two population or two samples.

Formula:

\text{Coefficient of Variation} = \displaystyle\frac{\text{Standard Deviation}}{\text{Mean}}

\text{Standard Deviation} = \sqrt{\displaystyle\frac{\sum (x_i -\bar{x})^2}{n-1}}

where x_i are data points, \bar{x} is the mean and n is the number of observations.

Mean = \displaystyle\frac{\text{Sum of all observations}}{\text{Total number of observation}}

x: 14, 0, 39, 25, 32, 27, 28, 14, 14, 15

Mean = \frac{208}{10} = 20.8

Standard~Deviation = \sqrt{\frac{1169.6}{9} } = 11.39

Coefficient~of~Variation = \frac{11.39}{20.8} = 0.55

y = 6, 2, 29, 17, 26, 17, 17, 2, 3, 5

Mean = \frac{124}{10} = 12.4

Standard~Deviation = \sqrt{\frac{924.4}{9} } = 10.13

Coefficient~of~Variation = \frac{10.13}{12.4} = 0.82%

Since coefficient of variation of x is less compared to y, thus it could be said bonds does not reduce overall risk of an investment portfolio.

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the x s are the independent variable so any direct change to them is changing the independent.  like the second one has -5 on the x

8 0
3 years ago
The population of a colony of mosquitoes obeys the law of uninhibited growth. If there are 1000 mosquitoes initially and there a
Anettt [7]

Answer:

1) The size of the colony after 4 ​days is 6553 mosquitoes

2) After t = 4.9\ days

Step-by-step explanation:

To answer this question you must use the growth formula

N = N_0e ^ {kt}

Where

N_0 is the initial population of mosquitoes = 1000

t is the time in days

k is the growth rate

N is the population according to the number of days

We know that when t = 1 and N_0=1000 then N = 1600

Then we use these values to find k.

1600 = 1000e ^{k(1)}\\\\\frac{1600}{1000} = e ^ k\\\\ln(\frac{1600}{1000}) = k\\\\k = 0.47

Now that we know k we can find the size of the colony after 4 days.

N = 1000e ^ {0.47(4)}\\\\N = 6553\ mosquitoes

To know how long it should take for the population to reach 10,000 mosquitoes we must do N = 10000 and solve for t.

10000 = 1000e ^ {0.47t}\\\\10 = e ^ {0.47t}\\\\ln(10) = 0.47t\\\\t = \frac{ln(10)}{0.47}\\\\t = 4.9\ days

6 0
3 years ago
Compare -3.6 and 1.2.
jasenka [17]

Answer:

-3.6 is a negative number compared to 1.2. 1.2 is -3 times less than -3.6. -3.6 is -3 times more than 1.2

Step-by-step explanation:

(can I get brainliest)

8 0
3 years ago
Read 2 more answers
Since there are 6.6 laps in a mile, how many laps will you have to make to run 5 miles?
mezya [45]

Answer:

33 laps

Step-by-step explanation:

we know that

There are 6.6 laps in a mile

so

using proportion

Find how many laps will you have to make to run 5 miles

so

Let

x ----> the number of laps

\frac{6.6}{1}\frac{laps}{mile}=\frac{x}{5}\frac{laps}{mile} \\ \\x=6.6*5\\ \\ x=33\ laps

4 0
3 years ago
In a recipe for fizzy grape juice, the ratio of cups of sparkling water to cups of grape juice concentrate is 3 to 1. a) Find tw
Verizon [17]

Answer:

6:2,\,9:3

Step-by-step explanation:

Given: The ratio of cups of sparkling water to cups of grape juice concentrate is 3:1 in a recipe for fizzy grape juice.

To find: two more ratios of cups of sparkling water to cups of juice concentrate that would make a mixture that tastes the same as this recipe

Solution:

Equivalent ratios are the ratios that have the same value.

Find two ratios equivalent to 3:1=\frac{3}{1}

Multiply both numerator and denominator of \frac{3}{1} by 2

\frac{3(2)}{1(2)} =\frac{6}{2}

Multiply both numerator and denominator of \frac{3}{1} by 3

\frac{3(3)}{1(3)} =\frac{9}{3}

So, two more ratios of cups of sparkling water to cups of juice concentrate that would make a mixture that tastes the same as this recipe are 6:2,\,9:3

3 0
3 years ago
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