(b) Determine the mean and median rate of return for each sector. Which sector has the higher mean rate of return? Which sector has the higher median rate of return? xconsumer cyclical= Mconsumer cyclicsl =Xindustrial =Mindustrial =(c) Determine the standard deviation rate of return for each sector. In finance, the standard deviation rate of return is called risk. Typically, an investor "pays" for a higher return by accepting more risk. Is the investor paying for higher returns for these sectors? Sconsumer cyclical= sindustrial = Stocks may be categorized by sectors. The accompanying data represent the one-year rate of return (in percent) for a sample of consumer cyclical stocks and industrial stocks for a12-month period. Note: Consumer cyclical stocks include restaurants and retailers. Industrial stocks include manufacturers and shipping companies. Complete parts (a) through (c) below.E Click the icon to view the data. Cyclic Consumer17.66.715.9Full data setIndustrial-2242238.745.5-7.617.816.4- 1.7-3.55.1-7.534.99.85.746.1-4.39.2- 8.526.73.543.3-4.4- 14.3-6.441.5-4.524.714.8-5.16.213.111.5- 23.92.3-27.9- 14.5-8.2-0.382- 16.717.233.7- 29.522.62.119.5- 33.323.622.1-7.8- 12.15.1-0.1-0.347.5122522-7.231.27.81.674.926.83941.24.335.68.118.78.645.125.838.524.113.3-2826.33.88213.721.515.91.61.63.1-3.134.39.834.226.88.55.31.1-7.722.476.210.321.328.62.7-7.3-5.619.75.5-41.942.4127.2-4.323.928.2- 28.15.729.3-6.918.17.920.714.129.810.75.74.38.60.915.1-33-8.781.7-0.72.3-5.2-9.421.1-6.4-3.92.1-9.73.924.2-4.36.33.329.4-27.90.520.7- 10.912.722.1- 19.628.615.114.624.115.89.70.7-7.34.721.1-2.5322- 13.310.4-3.225.625.85.865.1-4.617.1-5.18.66.319.8-0.9- 34.708-5.7-6.671.4-9.6-3.25.97.5- 16.318.2- 14.44.935.42853.7-43- 26.3-9.913.415.4

Mean = Sum of observations/ number of observations Median = Middle observation (in case of odd…

Answered: (b) Determine the mean and median rate…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Related questions

Question

(b) Determine the mean and median rate of return for each sector. Which sector has the higher mean rate of return? Which sector has the higher median rate of return?

x_{consumer cyclical}

M_{consumer cyclicsl =}

X_industrial=

M_industrial=

(c) Determine the standard deviation rate of return for each sector. In finance, the standard deviation rate of return is called risk. Typically, an investor "pays" for a higher return by accepting more risk. Is the investor paying for higher returns for these sectors?

S_consumer _cyclical

s_industrial=

Stocks may be categorized by sectors. The accompanying data represent the one-year rate of return (in percent) for a sample of consumer cyclical stocks and industrial stocks for a
12-month period. Note: Consumer cyclical stocks include restaurants and retailers. Industrial stocks include manufacturers and shipping companies. Complete parts (a) through (c) below.
E Click the icon to view the data.

Cyclic Consumer
17.6
6.7
15.9
Full data set
Industrial
-224
223
8.7
45.5
-7.6
17.8
16.4
- 1.7
-3.5
5.1
-7.5
34.9
9.8
5.7
46.1
-4.3
9.2
- 8.5
26.7
3.5
43.3
-4.4
- 14.3
-6.4
41.5
-4.5
24.7
14.8
-5.1
6.2
13.1
11.5
- 23.9
2.3
-27.9
- 14.5
-8.2
-0.3
82
- 16.7
17.2
33.7
- 29.5
22.6
2.1
19.5
- 33.3
23.6
22.1
-7.8
- 12.1
5.1
-0.1
-0.3
47.5
122
522
-7.2
31.2
7.8
1.6
74.9
26.8
394
1.2
4.3
35.6
8.1
18.7
8.6
45.1
25.8
38.5
24.1
13.3
-28
26.3
3.8
82
13.7
21.5
15.9
1.6
1.6
3.1
-3.1
34.3
9.8
34.2
26.8
8.5
5.3
1.1
-7.7
22.4
76.2
10.3
21.3
28.6
2.7
-7.3
-5.6
19.7
5.5
-41.9
42.4
127.2
-4.3
23.9
28.2
- 28.1
5.7
29.3
-6.9
18.1
7.9
20.7
14.1
29.8
10.7
5.7
4.3
8.6
0.9
15.1
-33
-8.7
81.7
-0.7
2.3
-5.2
-9.4
21.1
-6.4
-3.9
2.1
-9.7
3.9
24.2
-4.3
6.3
3.3
29.4
-27.9
0.5
20.7
- 10.9
12.7
22.1
- 19.6
28.6
15.1
14.6
24.1
15.8
9.7
0.7
-7.3
4.7
21.1
-2.5
322
- 13.3
10.4
-3.2
25.6
25.8
5.8
65.1
-4.6
17.1
-5.1
8.6
6.3
19.8
-0.9
- 34.7
08
-5.7
-6.6
71.4
-9.6
-3.2
5.9
7.5
- 16.3
18.2
- 14.4
4.9
35.4
28
53.7
-43
- 26.3
-9.9
13.4
15.4

Definition Definition Middle value of a data set. The median divides a data set into two halves, and it also called the 50th percentile. The median is much less affected by outliers and skewed data than the mean. If the number of elements in a dataset is odd, then the middlemost element of the data arranged in ascending or descending order is the median. If the number of elements in the dataset is even, the average of the two central elements of the arranged data is the median of the set. For example, if a dataset has five items—12, 13, 21, 27, 31—the median is the third item in ascending order, or 21. If a dataset has six items—12, 13, 21, 27, 31, 33—the median is the average of the third (21) and fourth (27) items. It is calculated as follows: (21 + 27) / 2 = 24.

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