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
icon
Related questions
Question

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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,