Which sector has the higher median rate of return

Assignment Help Mathematics

Reference no: EM131125407

Rates of Return of Stocks Stocks may be categorized by industry. The data on the following page represent the 5-year rates of return (in percent) for a sample of consumer goods stocks and energy stocks ending November 10, 2010.

(a) Determine the mean and the median rate of return for each industry. Which sector has the higher mean rate of return?

Which sector has the higher median rate of return?

(b) Determine the standard deviation for each industry. In finance, the standard deviation rate of return is called risk.

Typically, an investor "pays" for a higher return by accepting more risk. Is the investor paying for higher returns in this instance? Do you think the higher returns are worth the cost?

CONSUMER GOODS STOCKS

9.83	10.11	11.06	9.32	7.5
8.66	13.7	15.04	17.24	16.83
6.22	8.86	11.79	9.64	-14.12
16.83	14.85	15.24	34.17	-8.32
0.52	1.46	11.26	6.79	10.66

ENERGY STOCKS

11.02	11.08	20.26	15.18	-0.13
4.13	1.61	1.58	16.14	-0.42
17.11	15.32	8.49	7.44	11.01
8.53	37.83	5.21	10.68	10.27
10.76	34.32	3.97	19.3	11.28

Reference no: EM131125407

Questions Cloud

Find the probability that the width of any given piece : Describe a real-life situation to which the normal distribution could be applied. Explain why. How does a normal distribution differ from one, which is not? Which aspects of your situation might be altered?

Discuss different ethnic identities represented in the film : Discuss Different ethnic, racial, and class identities represented in the film, Attitudes and perceptions of interracial marriage among the Martinicans and Racial attitude among White, Black, and mixed Martinicans.

Greatest challenge-provide a recommendation for addressing : You have been selected to be the project manager (for a project of your choice). The project you choose here will be used again in Assignment 4 (Week 6) and you may be asked to reference this project in subsequent weekly discussions.

Determine the sample standard deviation length of eruption : Determine the actual percentage of eruptions that last less than 98 seconds.

Which sector has the higher median rate of return : Typically, an investor "pays" for a higher return by accepting more risk. Is the investor paying for higher returns in this instance? Do you think the higher returns are worth the cost?

The national football league : ETHICS: The National Football League (NFL) owns the copyright to the broadcasts of its games. It licenses local television stations to telecast certain games and maintains a"blackout rule,"which prohibits stations from broadcasting home games that..

Prepare a two-page reflection paper on frederick douglass : Prepare a two-page reflection paper that ideally based on Frederick Douglass and his roll in civil rights and the impact he had on those times.

How many stations needed to locate an earthquake : What is the longest fault Line? What is the deepest Trench in the world? How many stations needed to locate an earthquake

Midwestern and western states permit : Iowa enacted a statute prohibiting the use of sixty-five-foot double-trailer-truck combinations. All of the other Midwestern and western states permit such trucks to be used on their roads.

User Account

All Pages