The research analyst for the Sidde Financial stock brokerage firm wants to compare the dispersion in the

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The research analyst for the Sidde Financial stock brokerage firm wants to compare the dispersion in the price-earnings ratios for a group of common stocks with the dispersion of their return on investment. For the price-earnings ratios, the mean is 4.9, and the standard deviation 1.8. The mean return on investment is 10% and the standard deviation 5.2%.
a. Why should the coefficient of variation be used to compare the dispersion?
b. Compare the relative dispersion for the price-earnings ratios and return on investment.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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Related Book For  book-img-for-question

Basic Statistics For Business & Economics

ISBN: 9781259268939

6th Canadian Edition

Authors: Douglas A. Lind, William G Marchal, Samuel A. Wathen, Carol Ann Waite

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