Question: Consider the annualized stock return over the decade from 2000 to 2010, July to July, expressed as an annual interest rate in percentage points per
a. Find the standard deviation of the stock return. What are the units of measurement?
b. Briefly summarize the interpretation of the standard deviation (from part a) in terms of the differences among these firms.
c. Find the range. What are the units of measurement?
d. Briefly summarize the interpretation of the range (from part c) in terms of the differences among these firms.
e. Find the coefficient of variation. What are the units of measurement?
f. Briefly summarize the interpretation of the coefficient of variation (from part e) in terms of the differences among these firms.
g. Find the variance. What are the units of measurement?
h. Briefly summarize the interpretation of the variance (from part g) or indicate why there is no simple interpretation.
i. Draw a histogram of this data set. Indicate the average, standard deviation, and range on your graph.
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TABLE 5.5.2 Performance of Pharmaceutical Firms Fim Abbott Amgen Bristol Myers Eli Lilly Genzyme Gilead Sciences J&J Merck Mylan Pfizer Annualized Stock Return 4.54% -2.31% -2.12% -759% 4.15% 22.40% 4.93% -2.86% 6.89% -7A2%
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a Standard deviation 883 measured in percentage points per year b The typical return was 883 percent... View full answer
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