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 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 
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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