The average annual return on a certain stock is 8.3%, and the variance of the returns on the stock is 2.3. Another stock has an average return of 8.4% per year and a variance of 6.4. Which stock is riskier? Why?
Answer to relevant QuestionsReturns on a certain business venture, to the nearest $1,000, are known to follow the probability distribution X P(x) -2,000 ...... 0.1 -1,000 ...... 0.1 0 ...... 0.2 1,000 ...... 0.2 2,000 ...... 0.3 3,000 ...... 0.1 a. ...All voters of Milwaukee County were asked a week before Election Day whether they would vote for a certain presidential candidate. Of these, 48% answered yes, 45% replied no, and the rest were undecided. If a yes answer is ...Look at the histogram of probabilities in the binomial distribution template for the case n = 5 and p = 0.6. a. Is this distribution symmetric or skewed? Now, increase the value of n to 10, 15, 20, . .. Is the distribution ...A real estate agent has four houses to sell before the end of the month by contacting prospective customers one by one. Each customer has an independent 0.24 probability of buying a house on being contacted by the agent. a. ...Laptop computers produced by a company have an average life of 38.36 months. Assume that the life of a computer is exponentially distributed (which is a good assumption). a. What is the probability that a computer will fail ...
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