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

Differential equation.., 3.6Find the general solution of the differential e...

3.6Find the general solution of the differential equation Y" + 4y = Sec2 2x

Algebra 1, pls help me solve this step by step 6*11(7+3)/5-(6-4)

pls help me solve this step by step 6*11(7+3)/5-(6-4)

Why is it important the the enlightenment grew out, Why is it important the...

Why is it important the the Enlightenment grew out of the salons and other meeting places of Europe? Who was leading the charge? Why was this significant? Where there any names or

Cubic math, A fish tank has the base area of 45 cm3 and is filled to the de...

A fish tank has the base area of 45 cm3 and is filled to the depth of 12 cm.If the height is 25 cm then how much more will be needed to fill the rest of the tank?

Differential equations, Find the normalized differential equation which has...

Find the normalized differential equation which has {x, xex} as its fundamental set

Product rule, Product Rule If the two functions f(x) & g(x) are differe...

Product Rule If the two functions f(x) & g(x) are differentiable (i.e. the derivative exist) then the product is differentiable and,

Determine rank correlation coefficient, Determine Rank Correlation Coef...

Determine Rank Correlation Coefficient A group of 8 accountancy students are tested in Quantitative Techniques and Law II.  Their rankings in the two tests were as:

What is the probability that the card is a queen, Five cards - the ten, jac...

Five cards - the ten, jack, queen, king and ace, are well shuffled with their face downwards. One card is then picked up at random. (i)  What is the probability that the card is

Can you explain slope, Can you explain slope and Slope is measured as rise/...

Can you explain slope and Slope is measured as rise/run?

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