Question

During a 5-week period in 2007, the stock of an insurance company and the stock of...

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 1.3 1.2 -0.4 0 -0.3 Tech Stock 0.9 -0.9 1.8 1.1 0.9 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. The tech stock is riskier. No statement about the riskiness of these stocks can be made. The insurance stock is riskier. The two stocks have the same riskiness.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

please like if it helps me please please

Thank you so much

Add a comment
Know the answer?
Add Answer to:
During a 5-week period in 2007, the stock of an insurance company and the stock of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Thirty-two people were chosen at random from employees of a large company. Their commute times​ (in...

    Thirty-two people were chosen at random from employees of a large company. Their commute times​ (in hours) were recorded in a table​ (shown bellow). 0.4, 0.9, 0.3, 0.5, 0.7, 1.2, 1.1, 0.7 0.6, 0.5, 0.8, 1.1, 0.9, 0.2, 0.5, 1.0 0.9, 1.0, 0.7, 0.2, 0.6, 1.1, 0.7, 1.1 0.5, 1.3, 0.7,0.6, 1.0, 0.8, 0.5, 0.9 Construct a frequency table using a class interval width of 0.2 starting at 0.15. Class Interval Frequency 0.15−0.35 0.35−0.55 0.55−0.75    0.75−0.95    0.95−1.15   ...

  • Thirty-two people were chosen at random from employees of a large company. Their commute times (in...

    Thirty-two people were chosen at random from employees of a large company. Their commute times (in hours) were recorded in a table (shown on the right) 0.4 0.8 0.3 0.5 0.6 1.4 10 06 0.7 1.2 0.9 1.0 10.8 0210.5 1.1 0.8 11 06 02 0.7 1.0 0.6 0.3 0.5 1.3 0.6 0.7 0.5 0.9 0.5 0.8 Construct a frequency table using a class interval width of O2 starting at 0.15 (Type integers or simplified tractions) Class Interval Frequency Relative...

  • 1.3 (5 points) Two stocks have the following expected returns and standard deviations Stock Stock Expected...

    1.3 (5 points) Two stocks have the following expected returns and standard deviations Stock Stock Expected return Standard Deviation A 10% 12% B 15% 20% Consider a portfolio of A and B, and let w, and wg denote the portfolio weights of these two assets, with W + W, =1. Suppose that the correlation between the expected returns on A and B is equal to 0.3. Use these data to construct the portfolio of A and B with the lowest...

  • Trans-Pacific Industry & Technology Company Trans-Pacific Industry & Technology (TPIT), Inc. is a diversified industrial company....

    Trans-Pacific Industry & Technology Company Trans-Pacific Industry & Technology (TPIT), Inc. is a diversified industrial company. The Company owns businesses providing products & services to the energy, transportation, chemical, and construction sectors. The energy segment operates as an oil and natural gas contract drilling company the United States. The energy segment acquires, explores, develops, and produces oil and natural gas properties primarily located in Oklahoma and Texas, as well as in Arkansas, Colorado, Kansas, Louisiana, Mississippi, Montana, New Mexico, North...

  • The following​ table Year   A Returns   B Returns 2005   -4.7%   17.7% 2006   1.4%   -8.1% 2007   -31.4%  ...

    The following​ table Year   A Returns   B Returns 2005   -4.7%   17.7% 2006   1.4%   -8.1% 2007   -31.4%   -25.4% 2008   -11.3%   -3.6% 2009   31.4%   10.4% 2010   26.7%   9.2% 2011   22.6%   5.4% 2012   51.5%   42.6% 2013   35.7%   41.5% 2014   29.3%   39.4% 2015   26.2%   12.1% 2016   5.5%   -0.2% 2017   43.3%   26.2% contains annual returns for the stocks of Company Upper A ​(Upper A​) and Company Upper B ​(Upper B​). The returns are calculated using​ end-of-year prices​ (adjusted for dividends and stock​ splits). Use the...

  • please show work!! Additional Algo 14-3 Standard Deviation of Demand Over Multiple Periods Each period, demand...

    please show work!! Additional Algo 14-3 Standard Deviation of Demand Over Multiple Periods Each period, demand for apples is normally distributed with a mean of 290 and standard deviation of 70 Round your answer to two decimal places. What is the standard deviation of demand over 2 periods? PA 14-5 A Cold Inc is a frozen food distributor with... Use Table 141 ACold Inc is a frozen food distributor with 10 warehouses across the country. Ivan Tory, one of the...

  • (13 – 18) Pioneer Company has a 10 Million Pesos in debt outstanding bearing an interest...

    (13 – 18) Pioneer Company has a 10 Million Pesos in debt outstanding bearing an interest rate of 6%. It wishes to finance a 10 million expansion and is considering three options: Option 1, Additional debt at 8% interest, Option 2 Preferred stock with a 12% dividend rate, Option 3 Sale of Common stock @ 20 pesos /share. The company presently has 1 million shares of common stocks outstanding and has a 40% tax bracket. If earnings before interest and...

  • Find the probability and interpret the results. If convenient, use technology to find the probability. During...

    Find the probability and interpret the results. If convenient, use technology to find the probability. During a certain week the mean price of gasoline was $2 717 per gallon. A random sample of 38 gas stations is drawn from this population. What is the probability that the mean price for the sample was between S2 699 and S2 718 that week? Assume ơ-SO 049 EE Click the icon to view page 1 of the standard normal table EE Click the...

  • Direct Materials and Direct Labor Variances At the beginning of June, Kimber Toy Company budgeted 12,000...

    Direct Materials and Direct Labor Variances At the beginning of June, Kimber Toy Company budgeted 12,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials Direct labor $18,000 11,760 $29,760 Total The standard materials price is $0.60 per pound. The standard direct labor rate is $14.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $16,400 Actual...

  • please use Tables 3.2 and 3.3 in the book on pages 82 and 86 respectively. Please...

    please use Tables 3.2 and 3.3 in the book on pages 82 and 86 respectively. Please calculate Hernandez's basic liquidity ratio. Table 3-3 Cash Flow Statement for a Couple with Two Children-Victor and Maria Hernandez, January 1-December 31, 2018 Dollars Percent 53,000 32,000 1,800 1,000 200 7.720 95,720 55.4% 33.4% 1.9% 1.0% 0.2% 8.1% 100.0% INCOME Victor's gross salary Maria's gross salary Interest and dividends Bonus Tax refunds Net rental income Total Income EXPENDITURES Fixed Expenses Mortgage loan payments Real...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT