Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Stock XYZ 3.4 24.9 10.5 30.6 16.0 25.7 27.3 20.7 15.3 26.9 39.0 Broad Market Index Fund DEF 15.4 15.3 12.0 24.9 26.9 -2.8 21.8 21.0 23.7 11.8 20.2 Bond ABC 4.9 7.8 12.2 5.1 13.1 7.6 8.8 6.0 12.9 11.0 13.9 Sanders Insurance Company is trying to identify an investment plan for their unearned premium reserves. They are considering three investment options. To the left are historical returns for eacch option. For each option, do the following: 1. calculate the average return. 2. calculate the return standard deviations. 3. calculate the coefficient of variation. Calculate the standard deviations two ways: using the Excel function and do the step-by-step process in Excel (difference column, square column, ...). Which investment option would you recommend to Sanders Insurance? Explain your decision.

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter8: Sequences, Series, And Probability
Section8.CR: Chapter Review
Problem 77E
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could you show the calculations in excel?
Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Stock XYZ
3.4
24.9
10.5
30.6
16.0
25.7
27.3
20.7
15.3
26.9
39.0
Broad Market
Index Fund
DEF
15.4
15.3
12.0
24.9
26.9
-2.8
21.8
21.0
23.7
11.8
20.2
Bond ABC
4.9
7.8
12.2
5.1
13.1
7.6
8.8
6.0
12.9
11.0
13.9
Sanders Insurance Company is trying to identify an investment plan for their unearned premium
reserves. They are considering three investment options. To the left are historical returns for eacch
option.
For each option, do the following:
1. calculate the average return.
2. calculate the return standard deviations.
3. calculate the coefficient of variation.
Calculate the standard deviations two ways: using the Excel function and do the step-by-step process
in Excel (difference column, square column, ...).
Which investment option would you recommend to Sanders Insurance? Explain your decision.
Transcribed Image Text:Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Stock XYZ 3.4 24.9 10.5 30.6 16.0 25.7 27.3 20.7 15.3 26.9 39.0 Broad Market Index Fund DEF 15.4 15.3 12.0 24.9 26.9 -2.8 21.8 21.0 23.7 11.8 20.2 Bond ABC 4.9 7.8 12.2 5.1 13.1 7.6 8.8 6.0 12.9 11.0 13.9 Sanders Insurance Company is trying to identify an investment plan for their unearned premium reserves. They are considering three investment options. To the left are historical returns for eacch option. For each option, do the following: 1. calculate the average return. 2. calculate the return standard deviations. 3. calculate the coefficient of variation. Calculate the standard deviations two ways: using the Excel function and do the step-by-step process in Excel (difference column, square column, ...). Which investment option would you recommend to Sanders Insurance? Explain your decision.
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