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

Find the are length and sketch the level curves, 1) Find the are length of ...

1) Find the are length of r(t) = ( 1/2t^2, 1/3t^3, 1/3t^3) where t is between 1 and 3 (greater than or equal less than or equal) 2) Sketch the level curves of f(x,y) = x^2-2y^2

How many dollars did they raise the first two days, The freshman class is p...

The freshman class is participating in a fundraiser. Their target is to raise $5,000. After the first two days of the fundraiser, they have raised 32 percent of their goal. How man

Theorem of reduction of order, In this theorem we identify that for a speci...

In this theorem we identify that for a specified differential equation a set of fundamental solutions will exist. Consider the differential equation  y′′ + p (t ) y′ + q (t

Find out a particular solution to equation, Example: Find out a particular...

Example: Find out a particular solution to y'' - 4y' - 12 y = 3e 5t Solution The point here is to get a particular solution, though the first thing that we're going to

Complex numbers, express the complex number z=5+i divide 2+3i in the form ...

express the complex number z=5+i divide 2+3i in the form a+ib

Kyla, hi i am doing the oaks test do you have somthing that could help me

hi i am doing the oaks test do you have somthing that could help me

Solving trig equations with calculators part ii, Solving Trig Equations wit...

Solving Trig Equations with Calculators, Part II : Since this document is also being prepared for viewing on the web we split this section into two parts to keep the size of the

Regression coefficient, 4x+3y+7=0 and 3x+4y+8=0 find the regression coeffic...

4x+3y+7=0 and 3x+4y+8=0 find the regression coefficient between bxy and byx.

Algebra, let setM={X,2X,4X} for any numberX .if average (arthemetic mean)of...

let setM={X,2X,4X} for any numberX .if average (arthemetic mean)of the number in setM is 14.what is the value of X?

#titleBUsiness calculus.., If $2,000 is invested in a savings account offer...

If $2,000 is invested in a savings account offering interest at a rate of 3.5% per year, compounded continuously, how fast is the balance growing after 8 years? (Round your answer

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