You have the following forecast about a stock's return Probability 50% 10% 15% 15% 10% Return -20% -6% 8% 14% 20% (a) Calculate the semi-interquartile range and (b) the semi-variance below the mean. (c) Discuss the conditions under which the above two should be used as measures of risk instead of the variance.

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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You have the following forecast about a
stock's return
Probability
50%
10%
15%
15%
10%
Return
-20%
-6%
8%
14%
20%
(a) Calculate the semi-interquartile
range and (b) the semi-variance
below the mean. (c) Discuss the
conditions under which the above
two should be used as measures of
risk instead of the variance.
Transcribed Image Text:You have the following forecast about a stock's return Probability 50% 10% 15% 15% 10% Return -20% -6% 8% 14% 20% (a) Calculate the semi-interquartile range and (b) the semi-variance below the mean. (c) Discuss the conditions under which the above two should be used as measures of risk instead of the variance.
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