Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. x: 21 0 12 11 31 21 11 −14 −17 −8 y: 8 −2 26 14 15 21 13 −2 −2 −2   (a) Compute Σx, Σx2, Σy, Σy2. Σx   Σx2   Σy   Σy2   (b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and for y. (Round your answers to four decimal places.)   x y x     s2     s     (c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.)   x y Lower Limit     Upper Limit

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Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data.

x:
21
0
12
11
31
21
11
−14
−17
−8
y:
8
−2
26
14
15
21
13
−2
−2
−2
 
(a) Compute Σx, Σx2, Σy, Σy2.
Σx   Σx2  
Σy   Σy2  

(b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and for y. (Round your answers to four decimal places.)
  x y
x    
s2    
s    

(c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.)
  x y
Lower Limit    
Upper Limit    
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