Math

StatisticsQ&A LibraryGiven: Two funds- Vanguard Stock Index Funds(VSIF) and Vanguard Balanced Index funds(VBIF). Do bonds reduce the overall risk of an investment portfolio? Let "X" be a random variable representing annual percent return for the Vanguard Total Stock Index(all stocks). Let "Y" be a random variable representing annual return for the Vanguard Index Fund(60% stock and 40%bond). Make reasonable assumptions whether it is a sample or population. You can choose either one. For the past several years assume the following data: X: 13 0 37 24 32 26 27 -12 -12 -24 Y: 8 -2 26 15 25 18 15 -3 -4 -9 1. Compute the Coefficient of variation(CV) for each fund. Round your answers to the nearest tenth 2. If CV represents risk per unit of return,which fund appears to be better? Explain 3. Compute a 75% Chebyshev's interval around the mean for the X and Y valuesStart your trial now! First week only $4.99!*arrow_forward*

Question

Given: Two funds- Vanguard Stock Index Funds(VSIF) and Vanguard Balanced Index funds(VBIF).

Do bonds reduce the overall risk of an investment portfolio? Let "X" be a random variable representing annual percent return for the Vanguard Total Stock Index(all stocks). Let "Y" be a random variable representing annual return for the Vanguard Index Fund(60% stock and 40%bond). Make reasonable assumptions whether it is a sample or population. You can choose either one.

For the past several years assume the following data:

X: 13 0 37 24 32 26 27 -12 -12 -24

Y: 8 -2 26 15 25 18 15 -3 -4 -9

1. Compute the Coefficient of variation(CV) for each fund. Round your answers to the nearest tenth

2. If CV represents risk per unit of return,which fund appears to be better? Explain

3. Compute a 75% Chebyshev's interval around the mean for the X and Y values

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