Calculating the Coefficient of Variation and Standard Deviation
Not what you're looking for?
Please help with the following problems. Provide step by step calculations for each.
Year Stock A's Returns (rA) Stock B's Returns (rB)
2000 -18% 14.5
2001 33 21.8
2002 15 30.5
2003 -0.5 -7.6
2004 27 26.3
1. Calculate the standard deviation for each stock and for the portfolio
2. Calculate the coefficient of variation for each stock and for the portfolio.
If you were a risk averse investor- which stock is better?
Purchase this Solution
Solution Summary
This posting helps with accounting problems. Concepts covered include standard deviation and coefficient of variation for stocks and for portfolios. Step by step calculation sare given.
Solution Preview
Please see ** ATTACHED ** file(s) for complete solutions and details!!
1. Calculate the standard deviation for each stock and for the portfolio
First, variance = (X-M)^2 /(N-1)
Where M is the average return
^2 ...
Purchase this Solution
Free BrainMass Quizzes
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce