Can someone help me with part d? Do bonds reduce the overall risk of an investme

Question

Can someone help me with part d?

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: 13 0 27 24 30 11 38 -24-17-16 y 15 -11 23 25 21 16 18 -52 (a) Compute Dr, ??2, xy, Zy2 Ex 86 ??2 5060 ?y2 |2554 | y 98 (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 two decimal places.) x 8.60 s2 480.04 s 21.91 9.80 177.07 13.31 (c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.) Lower Limit -35.22 16.82 Upper Limit 52.42 36.42

Explanation / Answer

(d) Solution :
we know that X of x-bar = 8.60 , s = 21.91
Y of x-bar = 9.80 , s = 13.31

=> Coefficient of variation CV of X = s/x-bar * 100%
= 21.91/8.60 *100%
= 254.76
= 255 (nearest whole number)

=> Coefficient of variation CV of Y = s/x-bar * 100%
= 13.31/9.80 * 100%
= 135.81
= 136 (nearest whole number)

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