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Author Question: Compute an appropriate measure of dispersion for both stocks to measure the risk of these investment ... (Read 90 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
YES! Correct, THANKS for helping me on my review

peter

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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