EP BUSINESS STATISTICS:FIRST COURSE-ACC
8th Edition
ISBN: 9780135179802
Author: Levine
Publisher: PEARSON CO
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 3, Problem 3.13AC
Is there a difference in the variation of the yields of different types of investments? The file CD RATE contains the yields for one-year certificates of deposit (CDs) and five-year CDs for 52 banks listed for West Palm Beach, Florida on December 29, 2017.
- For one-year and five-year CDs, separately calculate the variance, standard deviation,
range , and coefficient of variation. - Based on the results of (a), do one-year CDs or five-year CDs have more variation in the yields Offered? Explain.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Vanguard's Precious Metals and Mining fund (Metals) and Fidelity's Strategic Income fund (Income) were two top-performing mutuals funds for the years 2000 through 2009. An analysis of annual return data for these two funds provided important information for anytype of investor. Over the past 10 years, the Metals fund posted a mean return of 24.65% with a standard deviation of 37.13%. On the other hand, the mean and the standard deviation of return for the Income fund were 8.51% and 11.07%, repectively. It is reasonable to assume that the returns of the Metals and the Income funds are both normally distributed, where the means and the standard deviations are derived from the 10-year sample period.
In a report, use the sample information to compare and contrast the Metals and Income funds from the perspective of an investor whose objective is to
1. Minimize the probability of earning a negative return.
2. Maximize the probability of earning a return between 0% and 10%.
3. Maximize the…
Pax World Balanced is a highly respected, socially responsible mutual fund of stocks and bonds. Vanguard Balanced Index is another highly regarded fund that represents the entire U.S. stock and bond market (an index fund). The mean and standard deviation of annualized percent returns are shown below. The annualized mean and standard deviation are for a recent 10-years period.†.
Pax World Balanced: x = 9.70%; s = 13.95% Vanguard Balanced Index: x = 8.88%; s = 12.35%
(a) Compute the coefficient of variation for each fund. (Round your answers to one decimal place.)
If x represents return and s represents risk, then explain why the coefficient of variation can be taken to represent risk per unit of return. From this point of view, which fund appears to be better? Explain.
A. Since the CV is s/s2 we can say that the CV represents the risk per unit of return; the Pax fund appears to be better because the CV is smaller.
B. Since the CV is s/s2 we can say that the CV represents the risk per…
Google's stock (GOOG) was tracked for 10 days, showing closing prices of 1,108.35; 1,132.5; 1,145.18; 1,129.33; 1,091.75; 1,102.85; 1,120.13; 1,127.46; 1,130.66; 1,110.45. Calculate the coefficient of variation of the dataset.
Chapter 3 Solutions
EP BUSINESS STATISTICS:FIRST COURSE-ACC
Ch. 3 - The following set of data is from a sample of n =...Ch. 3 - The following set of data is from a sample of n =...Ch. 3 - The set of data is from a sample of n = 7: 12 7 4...Ch. 3 - The following set of data is from a sample of n =...Ch. 3 - Wired, a magazine that delivers a glimpse into the...Ch. 3 - The operations manager of a plant that...Ch. 3 - According to the U.S. Census Bureau (census.gov),...Ch. 3 - The file MOBILESPEEO contains the overall download...Ch. 3 - The file AIRPORTRATING contains the of large and...Ch. 3 - The annual NFL Super Bowl is the most widely...
Ch. 3 - The ACCOUNTINGPARTNERS contains the number of...Ch. 3 - The file MOBILECOMMERCE contains the following...Ch. 3 - Is there a difference in the variation of the...Ch. 3 - Prob. 3.14ACCh. 3 - A bank branch located in a commercial district of...Ch. 3 - Prob. 3.16ACCh. 3 - Using the three-year return percentage variable in...Ch. 3 - Prob. 3.18ACCh. 3 - Using the three-year return percentage variable in...Ch. 3 - Using the three-year return percentage variable in...Ch. 3 - Prob. 3.21LBCh. 3 - The following is a set of data from a sample of n...Ch. 3 - Prob. 3.23LBCh. 3 - Prob. 3.24LBCh. 3 - The file ACCOUNTINGPARTNERS contains the number of...Ch. 3 - Prob. 3.26ACCh. 3 - The file HOTELAWAY contains the average room price...Ch. 3 - Prob. 3.29ACCh. 3 - Prob. 3.30ACCh. 3 - Prob. 3.31LBCh. 3 - The following is a set of data for a population...Ch. 3 - Consider a population of 1.024 mutual funds that...Ch. 3 - The file CIGARETTETAX contains the state cigarette...Ch. 3 - Prob. 3.36ACCh. 3 - The following is a set of data from a sample of n...Ch. 3 - The file CEREALS lists the calories and sugar, in...Ch. 3 - Movie companies need to predict the gross receipts...Ch. 3 - The file MOBILESPEED contains the overall download...Ch. 3 - A Pew Research Center survey found a noticeable...Ch. 3 - Prob. 3.44CYUCh. 3 - Prob. 3.45CYUCh. 3 - What are the differences among the mean, median,...Ch. 3 - Prob. 3.47CYUCh. 3 - Prob. 3.48CYUCh. 3 - Prob. 3.49CYUCh. 3 - Prob. 3.50CYUCh. 3 - Prob. 3.51CYUCh. 3 - Prob. 3.52CYUCh. 3 - Prob. 3.53CYUCh. 3 - Prob. 3.54CYUCh. 3 - Prob. 3.55CYUCh. 3 - How do the covariance and the coefficient of...Ch. 3 - The download and upload speeds of a mobile data...Ch. 3 - An insurance company has the business objective of...Ch. 3 - Prob. 3.59CRPCh. 3 - Prob. 3.60CRPCh. 3 - Prob. 3.61CRPCh. 3 - Prob. 3.62CRPCh. 3 - Prob. 3.63CRPCh. 3 - Prob. 3.64CRPCh. 3 - Prob. 3.65CRPCh. 3 - Prob. 3.66CRPCh. 3 - What was the mean price of a room at two-star,...Ch. 3 - The file PROPERTY TAXES contains the property...Ch. 3 - Prob. 3.69CRPCh. 3 - 311 is Chicagos web and phone portal for...Ch. 3 - How much do commuters living in or near cities...Ch. 3 - How do the mean credit scores of people living in...Ch. 3 - Prob. 3.74RWE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Find the mean hourly cost when the cell phone described above is used for 240 minutes.arrow_forwardA group of domestic equity mutual funds had a mean return of 6.2% with a standard deviation of 1.8%. The distribution of returns for mutual funds is normal. Find the cutoff return values that would separate the Lowest 16%, Middle 95% and Highest 2.5%arrow_forwardJ.P. Morgan Asset Management publishes information about financial investments. Over the past 10 years, the expected return for the S&P 500 was 5.04% with a standard deviation of 19.45% and the expected return over that same period for a core bonds fund was 5.78% with a standard deviation of 2.13%.† The publication also reported that the correlation between the S&P 500 and core bonds is −0.32. J.P. Morgan Asset Management also reported that the expected return for real estate investment trusts (REITs) was 13.07% with a standard deviation of 23.17%. The correlation between the S&P 500 and REITs is 0.74 and the correlation between core bonds and REITs is −0.04. (Past performance is no guarantee of future results.) You are considering portfolio investments that are composed of an S&P 500 index fund and REITs as well as portfolio investments composed of a core bonds fund and REITs. (a) Using the information provided, determine the covariance between the S&P 500…arrow_forward
- please solve the three sub-parts (a,b,f) by using given data in pictures a. Plot the frequency chart of monthly excess stock returns, and compute mean, volatility (i.e., standard deviation), skewness and kurtosis of excess stock returns, and perform a test for whether the excess stock returns are normally distributed; b. Perform a test and discuss your findings for the difference in means of the excess stock returns across periods of economic expansion and recession as indicated by the NBER recession index; f. Run a multivariate OLS regression of the excess stock return on all the three factor returns (Mkt_RF, SMB, HML). Explain and discuss the economic significance (i.e., the magnitude) and statistical significance of the intercept and the relations between the excess stock return and the three factor returns;arrow_forwardIf the mean of the number of sales of houses is fifty-six, and the standard deviation is thirty-six, then the coefficient of variation isarrow_forwardSuppose that the annual rate of return for a common biotechnology stock is normally distributed with a mean of 5% and a standard deviation of 6%. Find the probability that the one-year return of this stock will be positive. Round your answer to at least four decimal places.arrow_forward
- A study of Brown Bag Company's payment practices showed that the company pays its vendors 20 days after the accounting department receives the invoice. The standard deviation is 5 days. Assuming that there is a normal distribution across the company's payments, what percent of the invoices are paid within 15 days of receiving them? Based on your answer, recommend an effective payment strategy for the company.arrow_forwardAccording to Investment Digest, the arithmetic mean of the annual return for common stocks over an 85-year period was 9.5% but the value of the variance was not mentioned. Also 25% of the annual returns were below 8% while 65% of the annual returns were between 8% and 11.5%. The article claimed that the distribution of annual return for common stocks was bell-shaped and approximately symmetric. Assume that this distribution is normal with the mean given above. find the probability that the annual return of a random year will be less than 11.5%. a. 95% b. 90% c. 70% d. 50% e. 10%arrow_forwardAbbi is a final year student in OxfordUniversity doing her dissertation. After discussing with her supervisor, her research objective is to estimate the relationship between returns of stocks and level of risk of stocks (i.e. standard deviation of stock returns). Abbi is using primary data and secondary data for her research. Date Tesco Stock Price 01/05/2019 220.0 01/06/2019 224.1 01/07/2019 220.7 01/08/2019 216.6 01/09/2019 238.2 01/10/2019 232.5 01/11/2019 229.4 01/12/2019 255.2 01/01/2020 246.9 01/02/2020 228.5 01/03/2020 228.8 01/04/2020 218.8 03/04/2020 223.9 In her dissertation, Abbi states that primary data is qualitative data. Is it correct? If not, how would you explain to Abbi? The monthly percentage change on 01/04/2020?( explain how you calculate in excel, which formula you use). thank you in advancearrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillBig Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin HarcourtCollege Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning
- Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Correlation Vs Regression: Difference Between them with definition & Comparison Chart; Author: Key Differences;https://www.youtube.com/watch?v=Ou2QGSJVd0U;License: Standard YouTube License, CC-BY
Correlation and Regression: Concepts with Illustrative examples; Author: LEARN & APPLY : Lean and Six Sigma;https://www.youtube.com/watch?v=xTpHD5WLuoA;License: Standard YouTube License, CC-BY