Question 2 The following table is showing historical returns for shares called Gama and Delta from...
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Question 2 The following table is showing historical returns for shares called Gama and Delta from 2017 to 2021. By using that information, answer the following questions Year 2017 2018 2019 2020 2021 Gama 20% 8% 12% 19% 3% Delta 6% 14% 9% 5% 16% A) Calculate the standard deviation for each investment's returns. (5 marks) B) On the basis of your calculations in part A, which investment has less risk? (2marks) C) Comment on the appropriateness of standard deviation as a measure of risk. (8 marks) Question 2 The following table is showing historical returns for shares called Gama and Delta from 2017 to 2021. By using that information, answer the following questions Year 2017 2018 2019 2020 2021 Gama 20% 8% 12% 19% 3% Delta 6% 14% 9% 5% 16% A) Calculate the standard deviation for each investment's returns. (5 marks) B) On the basis of your calculations in part A, which investment has less risk? (2marks) C) Comment on the appropriateness of standard deviation as a measure of risk. (8 marks)
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Related Book For
Introduction to Information Systems Supporting and Transforming Business
ISBN: 978-1118063347
4th edition
Authors: Kelly Rainer, Casey Cegielski
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