Investors commonly use the standard deviation

Assignment Help Other Subject

Reference no: EM13520659

Investors commonly use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund; in such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower standard deviation. The standard deviation for the American Century Equity Growth fund and the standard deviation for the Fidelty Growth Discovery fund were recently reported to be 15.0% and 18.9%, respectively (The Top Mutual Funds, AAII, 2009). Assume that each of these standard deviations is based on a sample of 60 months of returns. Do the sample results support the conclusion that the Fidelity fund has a larger population variance than the American Century fund? Which fund is more risky?

Reference no: EM13520659

Questions Cloud

Determine the final kinetic energy of the electron : An x ray with a wavelength of 0.100 collides with an electron that is initially at rest. What is the final kinetic energy of the electron

State null and alternative versions of research hypothesis : State the null and alternative versions of the research hypothesis that the variance in annual repair costs is larger for the older automobiles. At a .01 level of signifigance, what is your conclusion? What is the p-value? Discuss the reasonablenes..

Is he carrying the quest for wisdom to an absurd extreme : Would you escape from prison if you could and believed you were innocent? Why or why not? If so, then where does Socrates’ argument go wrong? Is he carrying the quest for wisdom to an absurd extreme?

How far is the rhino from the origin : A rhinoceros is at the origin of coordinates at time t1 = 0. For the time interval from t1 to t2 = 15.0s , the rhino's average velocity has x-component -3.2 m/s and y-component 6.0 m/s. How far is the rhino from the origin?

Investors commonly use the standard deviation : Investors commonly use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund; in such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower st..

How does crito try to convince socrates to escape : How does Crito try to convince Socrates to escape? What fallacies can you identify in his reasoning? Socrates concludes that he will not escape. What are the premises to his argument? Evaluate them in terms of our criteria for cogent reasoning.

In euthyphro socrates demonstrates : In euthyphro socrates demonstrates that all the gods do no approve of the same things; therefore the definition of piety as "what the gods love" cannot stand. What does Euthyphro reply to this. What refinement does he make to his definition? How d..

Written in opposition to slavery : Both Sojourner Truth’s autobiographical Narrative and Harriet Beecher Stowe’s fictional Uncle Tom’s Cabin were written in opposition to slavery. Compare the passages of these two female authors and describe any similarities and/or differences you see..

Explain the nature of belief and values : Identify a decision about which reasonable minds can disagree. Explain the nature of belief and identify the beliefs and values that informed the decision that was made; explain a relevant theory of human freedom, consciousness, and/or reality; analy..

User Account

All Pages