Samantha McBear is a risk averse individual who does not like to experience volatility in her investments. In deciding t

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Samantha Mcbear Is A Risk Averse Individual Who Does Not Like To Experience Volatility In Her Investments In Deciding T 1 (140.78 KiB) Viewed 44 times

Samantha McBear is a risk averse individual who does not like to experience volatility in her investments. In deciding to purchase shares in either Stock A or Stock B, she selects a random sample of 10 weeks for each stock and records the closing price of each stock on Friday. 40 58 69 51 Stock A 47 51 54 36 49 46 12 6 14 11 Stock B 16 8 16 11 9 17 (a) Compute the sample mean and standard deviation of the Stock A closing prices. (b) The sample mean of the Stock B closing prices is $12.00, and the sample standard deviation is approximately $3.71. Use this information along with the sample mean and standard deviation computed for Stock A in (a) to determine the coefficient of variation for each of the two stocks. (c) Which measure would you recommend to Samantha to use when comparing the vari- ability in the two stocks, the standard deviation or the coefficient of variation? Explain. (d) Calculate Qı and median for Stock A and P70 for Stock B.