Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Statistics and Probability Expert

Statistics


Home >> Statistics and Probability

According to the annual report issued by Wilson & Associates, an investment firm in Bowling Green, the stocks in its Growth Fund have generated an average return of 8% with a standard deviation of 2%. The stocks in the Specialized Fund have generated an average return of 18% with a standard deviation of 6%.

a. Based on the data provided, which of these funds has exhibited greater relative variability? Use the proper statistical measure to make your determination.

b. Suppose an investor who is very risk-averse is interested in one of these two funds. Based strictly on relative variability, which fund would you recommend? Discuss.

c. Suppose the distributions for the two stock funds had a bell-shaped distribution with the means and standard deviations previously indicated. Which fund appears to be the best investment, assuming future returns will mimic past returns? Explain.

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M91676799

Have any Question?


Related Questions in Statistics and Probability

A if n7 days campus is open and p022 the probability that

A. If n=7 (days campus is open) and p=0.22 (the probability that a student is on campus on any given day), determine the theoretical mean and standard deviation for the number of days on campus each week.

Suppose we can only sample from uniform distribution 01

Suppose we can only sample from Uniform distribution (0,1) with k=3. Design an algorithm to simulate chi-square distribution with 2k freedom via general transformation method.

There are twenty stores for a grocery chain in the

There are twenty stores for a grocery chain in the Mid-Atlantic region. The regional executive wants to visit five of the twenty stores. She asks her assistant to choose five stores and arrange the visit schedule. (Pleas ...

What are the ways that it can help comply with legal

What are the ways that IT can help comply with legal requirements and social responsibilities surrounding the sales of alcohol?

The times that customers spend in a book store are normally

The times that customers spend in a book store are normally distributed with a mean of 39.5 minutes and a standard deviation of 15.9 minutes. A random sample of 25 customers has a mean of 36.1 minutes or less. Would this ...

Anbsphow much money would you have to invest today to

a.  How much money would you have to invest today to accumulate ?$3,100   after  4 years  if the rate of return on your investment is 15?%? b.  What is the present value of ?$3,100 that you will receive after 4 years if ...

According to recent study 143 of 453 technology ceos from

According to recent? study, 143 of 453 technology CEOs from around the world responded that technological advances will transform their business and 85responded that resource scarcity and climate change will transform th ...

A company that sells annuities must base the annual payout

A company that sells annuities must base the annual payout on the probability distribution of the 2) length of life of the participants in the plan. Suppose the probability distribution of the lifetimes of the participan ...

A if a firms marginal tax rate is increased this would

A. If a firm's marginal tax rate is increased, this would affect the cost of preferred stock used to calculate its WACC. T/F B. Suppose the debt ratio (Debt to total assets) is 30%, the current cost of debt is 8%, the cu ...

What are the uses and value of statistical significance

What are the uses and value of statistical significance testing and the p-value as demonstrated in the various analytical techniques (t-tests, ANOVA, chi-square, etc.). What's the fundamental reason we apply these techni ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved