This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Compute an appropriate measure of dispersion for both stocks to measure the risk of these investment ... (Read 87 times)

Mimi

  • Hero Member
  • *****
  • Posts: 542
on: Jun 24, 2018
Compute an appropriate measure of dispersion for both stocks to measure the risk of these investment opportunities. Which stock is more volatile?
 
  What will be an ideal response?

Question 2

What is the value of b0?
 
  A) 1.2432
  B) 0.2432
  C) 0.2003
  D) 0.8514


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Kedrick2014

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Jun 24, 2018
Answer to Question 1

The coefficients of variation are computed for both stocks to measure and compare the risk of these two investment opportunities. Since CVA = 11.41 and CVB = 0.253, we conclude that stock A is more volatile than stock B.

Answer to Question 2

B


Mimi

  • Member
  • Posts: 542
Reply 2 on: Jun 24, 2018
Gracias!

upturnedfurball

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

The nurse uses a noninvasive bladder ultrasound to measure the client’s bladder volume. The nurse uses a noninvasive bladder ultrasound to measure the client’s bladder volume.
To measure engine oil pressure, remove the oil pressure sending (sender) unit usually located near ... To measure engine oil pressure, remove the oil pressure sending (sender) unit usually located near ...
Reaction 3: The Second Investment of ATP Reaction 3: The Second Investment of ATP
Atlantic Cod Stocks, Grand and George Banks Atlantic Cod Stocks, Grand and George Banks
How at Risk Are You? How at Risk Are You?
Saving and Investment Rates of Industrialized Countries, 1960–1974 Saving and Investment Rates of Industrialized Countries, 1960–1974
Video: Wound Repair Animation

For a complete list of videos, visit our video library