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 Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute. $$\sum y$$ $$\begin{array} { l l c l l l l l l l l }
x : & 12 & 0 & 39 & 25 & 33 & 27 & 28 & - 12 & - 12 & - 25 \
y : & 7 & - 1 & 29 & 15 & 26 & 18 & 15 & - 1 & - 2 & - 7
\end{array}$$
A)106
B)100
C)99
D)101
E)107

Question

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 Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute. $$\sum y$$ $$\begin{array} { l l c l l l l l l l l } 
x : & 12 & 0 & 39 & 25 & 33 & 27 & 28 & - 12 & - 12 & - 25 \
y : & 7 & - 1 & 29 & 15 & 26 & 18 & 15 & - 1 & - 2 & - 7
\end{array}$$
A)106
B)100
C)99
D)101
E)107

Quizplus · Accepted Answer

The Answer of 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 Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute. $$\sum y$$ $$\begin{array} { l l c l l l l l l l l } 
x : & 12 & 0 & 39 & 25 & 33 & 27 & 28 & - 12 & - 12 & - 25 \
y : & 7 & - 1 & 29 & 15 & 26 & 18 & 15 & - 1 & - 2 & - 7
\end{array}$$
A)106
B)100
C)99
D)101
E)107

Do Bonds Reduce the Overall Risk of an Investment Portfolio ∑y\sum y∑y

Do Bonds Reduce the Overall Risk of an Investment Portfolio $\sum y$