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

Algebra, 25 algebraic equations that equal 36

25 algebraic equations that equal 36

Example of integrals involving root - integration technique, Evaluate the f...

Evaluate the following integral. ∫ (x+2 / 3√(x-3)) (dx) Solution Occasionally while faced with an integral that consists of a root we can make use of the following subs

Substitution, When I complete each of the three methods, should I get the s...

When I complete each of the three methods, should I get the same x and y values?

Cylinder - three dimensional spaces, Cylinder The below equation is th...

Cylinder The below equation is the common equation of a cylinder. x 2 /a 2 + y 2 /b 2 = 1 This is known as a cylinder whose cross section is an ellipse.  If a = b we

Experiments probabillity of compound events, what is the expiremental proba...

what is the expiremental probability that the next toss and spin will result in 3 and tail if 1-heads,53.2-heads,49.3-heads,54.1-tail,65.2-tails,71.3-tails,62

Mashed patatos, I have 6 cups of patatos that I have to share with 13 frien...

I have 6 cups of patatos that I have to share with 13 friends write that as the nearest hundredth

Circle, #question when equation of tangent T=0 and why

#question when equation of tangent T=0 and why

Empty set, There is one final topic that we need to address as far as solut...

There is one final topic that we need to address as far as solution sets go before leaving this section. Consider the following equation and inequality.

RATIO, 3 years to 104 weeks,express answer in ratio

3 years to 104 weeks,express answer in ratio

Tristansmath, how do i multiply demencinals

how do i multiply demencinals

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