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

How to dealing with exponents on negative bases, How to Dealing With Expone...

How to Dealing With Exponents on Negative Bases ? Exponents work just the same way on negative bases as they do on positive ones: (-2)0 = 1 Any number (except 0) raised to the

Geometry homework, i just have one question i need help on for my geometry ...

i just have one question i need help on for my geometry homework

What is identities and contradictions, What is Identities and Contradiction...

What is Identities and Contradictions ? Look at this equation: x + 1 = 1 + x It happens to be true always, no matter what the value of x. (Try it out! What if x is 43?)

Draw the state diagram - transition function, 1. Let M be the PDA with stat...

1. Let M be the PDA with states Q = {q0, q1, and q2}, final states F = {q1, q2} and transition function δ(q0, a, λ) = {[q0, A]} δ(q0, λ , λ) = {[q1, λ]} δ(q0, b, A) = {[q2

Application of linear equations, Application of Linear Equations We ar...

Application of Linear Equations We are going to talk about applications to linear equations.  Or, put in other terms, now we will start looking at story problems or word probl

Find the area of section a, The picture frame given below has outer dimensi...

The picture frame given below has outer dimensions of 8 in by 10 in and inner dimensions of 6 in by 8 in. Find the area of section A of the frame. a. 18 in 2 b. 14 in 2

Solution process of linear differential equations, For a first order linear...

For a first order linear differential equation the solution process is as given below: 1. Place the differential equation in the correct initial form, (1). 2. Determine the i

What is the integratin of 1/sin2x?, ∫1/sin2x dx = ∫cosec2x dx = 1/2 log[cos...

∫1/sin2x dx = ∫cosec2x dx = 1/2 log[cosec2x - cot2x] + c = 1/2 log[tan x] + c Detailed derivation of ∫cosec x dx = ∫cosec x(cosec x - cot x)/(cosec x - cot x) dx = ∫(cosec 2 x

Fractions, how do you do fractions mixed numbers and how do you add and sub...

how do you do fractions mixed numbers and how do you add and subtract fractions.

Simplification, If 3/5=5,4/7=8,8/7=6 then, what should 9/6 be ?

If 3/5=5,4/7=8,8/7=6 then, what should 9/6 be ?

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