Variance, Mathematics

Assignment Help:

Variance

Consider the example of investment opportunities. The expected gains were Rs.114 and Rs.81 respectively. The fact is that an investor also looks at the dispersion before coming to a decision.

501_variance.png

The dispersion of opportunity 1 is far greater than that of opportunity 2. This might alarm the investor.

In this example, it might be worthwhile to compute the coefficient of variation.

For opportunity 1, this works out to be

= (42/114) x 100 = 36.84%

For opportunity 2, this works out to be

= (29.14/81) x 100  = 35.97%

The investor may regard both opportunities homogeneous in this regard and therefore find opportunity 1 more attractive (because of the higher expected returns).

 


Related Discussions:- Variance

Times, teach me how to o times 7s

teach me how to o times 7s

2(sin 6+cos6) - 3(sin4+cos4)+1 = 0, 2(sin 6 ?+cos 6 ?) - 3(sin 4 ?+cos 4 ?...

2(sin 6 ?+cos 6 ?) - 3(sin 4 ?+cos 4 ?)+1 = 0 Ans:    (Sin 2 ?)3  + (Cos 2 ?)3-3 (Sin 4 ?+(Cos 4 ?)+1=0 Consider (Sin 2 ?)3  +(Cos 2 ?)3 ⇒(Sin 2 ?+Cos 2 ?)3-3 Sin 2 ?Co

QUANITATIVE METHODS, COMMENT ON QUANTITATIVE TECHNIQUES IS A SCIENTIFIC AND...

COMMENT ON QUANTITATIVE TECHNIQUES IS A SCIENTIFIC AND FOR ENHANCING CREATIVE AND JUDICIOUS CAPABILITIES OF A DECISION MAKER

Convergence, Assume that (xn) is a sequence of real numbers and that a, b €...

Assume that (xn) is a sequence of real numbers and that a, b € R with a is not eaqual to 0. (a) If (x n ) converges to x, show that (|ax n + b|) converges to |ax + b|. (b) Give

Help, how do I round a # and decimal

how do I round a # and decimal

Discovery, i have discovered a formula for finding the radius at any point ...

i have discovered a formula for finding the radius at any point of the graph have i done a good job

Computed the total cost y of a ride which was x miles, A ride in a taxicab ...

A ride in a taxicab costs $1.25 for the first mile and $1.15 for each additional mile. Which of the following could be used to computed the total cost y of a ride which was x miles

Three times the larger of the two numbers, If three times the larger of the...

If three times the larger of the two numbers is divided by the smaller, then the quotient is 4 and remainder is 5. If 6 times the smaller is divided by the larger, the quotient is

How to raise powers of monomials, How to raise Powers of Monomials ? To ...

How to raise Powers of Monomials ? To raise a monomial to a certain power: Step 1: Place the entire monomial inside parentheses, and place the desired power outside the paren

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd