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Jane wants to invest some money in stocks of one of two firms. She estimates the probabilities and corresponding dollar returns as follows: Stock A
Jane wants to invest some money in stocks of one of two firms. She estimates the probabilities and corresponding dollar returns as follows:
Stock A | Stock B | |||
Probability | $ return | Probability | $ return | |
0.3 | 20 | 0.2 | 79 | |
0.3 | 40 | 0.2 | 110 | |
0.2 | 83 | 0.2 | 120 | |
0.2 | 110 | 0.4 | 130 |
Part 3
What is the standard deviation for stock A?
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Part 4
What is the standard deviation for stock B?
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Part 5
What is the coefficient of variation for stock A?
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Part 6
What is the coefficient of variation for stock B?
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