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

Hcf and lcm, The HCF & LCM of two expressions are respectively (x+3) and (x...

The HCF & LCM of two expressions are respectively (x+3) and (x cube-7x+6). If one is x square+2x-3 , other is? Solution) (x+3) * (x^3-7x+6) = (x^2+2x-3) * y      ( ) (HCF*LCM=

Sciencetific notations, how would you answer a question like this on here ...

how would you answer a question like this on here (8x10^5)

Find the second derivative of the equation, Find the second derivative of t...

Find the second derivative of the below given equation Y= e x cosx

Business applications, Business Applications In this section let's tak...

Business Applications In this section let's take a look at some applications of derivatives in the business world.  For the most of the part these are actually applications wh

Power regression, how can i solve a multi variable power regression equatio...

how can i solve a multi variable power regression equation..? EX: y=a*(x1^b)*(x2^c).... i need to solve with 4 variable....

If she remains going at similar rate how long will it take, Susan traveled ...

Susan traveled 114 miles in 2 hours. If she remains going at the similar rate, how long will it take her to go the remaining 285 miles of her trip? There is a 1 in 6 chance of

Basic algebraic properties of real numbers, These can be expressed in...

These can be expressed in terms of two fundamental operations of addition and multiplication. If a, b and c are any three real numbers, then;     1.

Trig identities, What is the exact vale of sin(theta/2) when sintheta=3/5, ...

What is the exact vale of sin(theta/2) when sintheta=3/5, pi/2

Algebra, how do you work out algebra

how do you work out algebra

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