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Author Question: Compute an appropriate measure of dispersion for both stocks to measure the risk of these investment ... (Read 92 times)

Mimi

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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


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Kedrick2014

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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

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Reply 2 on: Jun 24, 2018
Wow, this really help

JCABRERA33

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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