Describe how the variance and standard deviation are calculated and indicate how they are used as measures

Question:

Describe how the variance and standard deviation are calculated and indicate how they are used as measures of risk.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Introduction to Finance Markets Investments and Financial Management

ISBN: 978-1118492673

15th edition

Authors: Melicher Ronald, Norton Edgar

See More Books

Question Posted: Mar 27, 2015 12:25 PM

See More Questions

Calculate the variance and standard deviation for samples for which a. n = 10 , x2 = 84, x = 20 b. n = 40, x2 = 380, x = 100 c. n = 20, x2 = 18, x = 17
Calculate the variance and standard deviation of returns for DE, INTC, PFE and the S&P 500.
Calculate the variance and standard deviation of returns for CVX, YUM, JNJ and the S&P 500.
Olena Mirrors records bad debt using the allowance, income statement method. They recorded $343,160 in accounts receivable for the year and $577,930 in credit sales. The uncollectible percentage is...
The numbers of mens colleges, not including seminaries, are shown in Table 26 for various years. Table 26 Numbers of Mens Colleges YearNumber of Mens Colleges 1967 .145 1975 . 80 1985 . 27 1995 . 11...
A 2.30 g air-inflated balloon is given an excess negative charge, q = -3.50 10-8 C, by rubbing it with a blanket. It is found that a charged rod can be held above the balloon at a distance of d =...
A motorist found that the efficiency of her engine could be increased by adding lubricating oil to fuel. She experimented with different amounts of lubricating oil and the data are (a) Obtain the...
Included in Adams Companys December 31, 2012, trial balance are the following accounts: Accounts Payable $220,000; Pension Asset/Liability $375,000; Discount on Bonds Payable $29,000; Unearned...
A strategy has a monthly total return of 0.0025 (0.25%) and a monthly standard deviation of total returns of 0.0040 (0.40% ). The risk free rate is 2% and the market risk premium is 4%, both per...
The Nori & Leets Co. is one of the major producers of steel in its part of the world. It is located in the city of Steel-town and is the only large employer there. Steel-town has grown and prospered...
Explain how a percentage return is calculated and describe the calculation of an arithmetic average return.
What is meant by the coefficient of variation? How is it used as a measure of risk?
Graph each function. g(x) = |x + 3| + 2
1.Identifying and interpreting the information for diagnosis and repair of the air brake systems: You must identify three Best Practices and Methods for obtaining and Analysing information from each...
Why was opening trade with China permanently different from other trade agreements? What were its positive and negative impacts on the US?
An underground fire service main in a methanol plant consists of glass reinforced plastic material. The piping is rated for 200 psi. The pump's churn pressure is rated at 280 psi. Numerous leaks have...
A mechanic works in a shop that uses a flat rate pay system. The flat-rate time for replacing water pump is 2 and 6/10 hours and the flat rate pay is $60. He takes 2 and 1/10 hours to change the...
Consider the $1.90 per person per day as the relevant international poverty line and define an appropriate weekly poverty line. Compute the poverty severity index for this population of households....
Use Newtons method to find all roots of the equation correct to six decimal places. cos x = x
Which property determines whether a control is available to the user during run time? a. Available b. Enabled c. Unavailable d. Disabled
What is the difference between domain definition and domain dictionary? Give an example for each.
What are the principal types of loans made by banks?
What factors appear to influence the growth and mix of loans held by a lending institution?
What is the CAMELS rating and how is it used?
Ned needs to produce more of his two products in order to increase his net income and has found a way to increase the limited resource, machine hours. He has two products, hammers and screwdrivers.....
What effect does an antagonist drug have over the receptors ?
Read this article on the differences and Comparisons between UNIX and LINUX http://www.diffen.com/difference/Linux_vs_Unix, then do some research and post your thoughts on each of the systems. Based...

Describe how the variance and standard deviation are calculated and indicate how they are used as measures

Question:

Step by Step Answer:

A deviation is the difference between an observed return and the arithmetic average ret...View the full answer

Introduction to Finance Markets Investments and Financial Management

Students also viewed these Accounting questions