During a 5-week period in 2007, the stock of an insurance company and the stock of a small tech company showed the following weekly percentage changes. Company Weekly Price Change (%) Insurance Stock -0.4 -1.4 0.5 -1.5 -0.7 Tech Stock -2.5 -2.3 1.3 4.4 -1.7 Find the variance of the weekly price changes of each. (Round your answers to four decimal places.) insurance stock tech stock
During a 5-week period in 2007, the stock of an insurance company and the stock of a small tech company showed the following weekly percentage changes. Company Weekly Price Change (%) Insurance Stock -0.4 -1.4 0.5 -1.5 -0.7 Tech Stock -2.5 -2.3 1.3 4.4 -1.7 Find the variance of the weekly price changes of each. (Round your answers to four decimal places.) insurance stock tech stock
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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During a 5-week period in 2007, the stock of an insurance company and the stock of a small tech company showed the following weekly percentage changes.
| Company | Weekly Price Change (%) | ||||
| Insurance Stock | -0.4 | -1.4 | 0.5 | -1.5 | -0.7 |
| Tech Stock | -2.5 | -2.3 | 1.3 | 4.4 | -1.7 |
Find the variance of the weekly price changes of each. (Round your answers to four decimal places.)
| insurance stock | ||
| tech stock |
Relate the two variances found to the riskiness of the two stocks.
- No statement about the riskiness of these stocks can be made.
- The two stocks have the same riskiness.
- The insurance stock is riskier.
- The tech stock is riskier.
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