Answer Happy

(a) Draw a relative frequency histogram for each sector using a lower class limit for the first class of -50 and a class width of 10. Which sector appears to have more dispersion? Choose the correct relative frequency histogram for consumer cyclical stocks. COA OB. ● C. Aouanbey any 0.3 Rate of Retur Relative Frequency 150 150 C Rais of Ration Q Relative Frequency Choose the correct relative frequency histogram for industrial stocks. OA 5 034 B. 150 Rative Frequency Rate of Retum 150 Q Rade of Retum od 2 Relative Frequency OC. ===== Relative F 11 150 Rate of Retum 150 Rate of Retum Q C POO OD. Relative Frequency 0.3 OD. Relative Frequency 03- 150 Rate of Return 150 Rate of Pan Q G
Stocks may be categorized by sectors. The accompanying data represent the one-year rate of Patum ( The sector appears to have more dispersion. (b) Determine the mean and median rate of return for each sector. Which sector has the higher mean rate of return? Which sector has the higher median rate of return? *consumer cyclical = Mconsumer cyclical Xindustrial = Mindustrial 0 The . (Round to three decimal places as needed.) (Round to three decimal places as needed.) sector has the higher mean rate of return, and the sector has the higher median rate of return. (e) Determine the standard deviation rate of return for each sector. In finance, the standard deviation rate of return is called risk. Typically, an investor "pays" for a higher return by accepting more risk. Is the investor paying for higher returns for these sectors? consumer cyclical industrial The investor Home (Round to three decimal places as needed.). paying for a higher return for the sector with the higher median rate of return. 6
7.4 -8.6 -2.5 -13.5 8.9 14.9 17.5 5.1 32.3 22.7 2.4 1.8 -6.9 3.9 -8.8 -9.4 29.6 -8.7 36.7 14.9 17.3 -4.4 6.6 9.2 Cyclic Consumer 10.7 0.5 18.9 -5.6 -28.5 5.9 -25.1 21.8 -5.5 -0.9 1.8 27.7 -5.2 25.4 -8.8 -3.6 5.9 -8.6 6.6 21.2 -6.4 0.1 1.8 26.1 SIF 41.6 -5.3 6.1 41.2 0.3 -19.5 18.6 31.6 -26.8 26.7 0.4 15.7 9.7 23.5 -13.3 17.4 18.2 -0.5 5.6 1.7 19.6 -2.3 -32.7 6.3 AM -7.4 -0.4 24.5 -8.4 48.3 26.4 -7.6 -2.2 -19.3 4.2 -9.7 -0.5 47.3 14.4 55.4 -5.4 39.7 4.2 2.4 71.9 25.4 35.4 9.3 -21.2 An 15.1 37.3 7.5 3.9 8.4 35.7 2.8 13.2 4.3 45.1 -24.9 5.4 24.4 -7.8 17.5 3.6 22.7 26.4 3.2 66.5 -9.7 11.6 -5.3 13.1 AA Industrial 29.7 46.3 3.5 29.1 24.3 7.7 17.8 25.3 26.9 0.7 0.3 31.1 18.6 0.2 2.8 5.3 8.6 33.6 -3.7 -2.5 -4.9 79.5 5.6 -18.9 A 27.5 -9.7 47.1 17.6 39.8 29.7 16.5 -1.4 28.8 -7.5 10.2 89.4 -17.4 23.7 19.8 10.9 26.5 20.1 1.1 7.2 -16.6 4.1 34.4 6.1 PAA 24.5 2.5 -6.3 -2.8 2.5 3.4 -5.5 31.8 9.5 28.9 78.4 10.3 26.1 35.1 1.2 -44 -1.4 14.2 9.6 -47.3 48.7 120.5 -8.4 27.4 nn Full data set
17.5 5.1 32.3 22.7 2.4 1.8 -6.9 3.9 -8.8 -9.4 29.6 -8.7 36.7 - 14.9 17.3 -4.4 -6.6 -9.2 2.4 -25.1 21.8 -5.5 -0.9 1.8 27.7 -5.2 25.4 -8.8 -3.6 5.9 -8.6 6.6 21.2 -6.4 0.1 1.8 26.1 - 21.5 18.6 31.6 -26.8 26.7 0.4 15.7 9.7 23.5 -13.3 17.4 18.2 -0.5 5.6 1.7 19.6 -2.3 -32.7 6.3 -4.3 -7.6 -2.2 19.3 - 4.2 -9.7 -0.5 47.3 14.4 55.4 -5.4 39.7 4.2 2.4 71.9 25.4 35.4 9.3 - 21.2 -0.6 2.8 13.2 4.3 45.1 <-24.9 5.4 24.4 -7.8 17.5 3.6 22.7 26.4 3.2 66.5 -9.7 11.6 -5.3 R 14.1 17.8 25.3 26.9 0.7 0.3 31.1 18.6 0.2 2.8 5.3 8.6 33.6 -3.7 -2.5 <-4.9 79.5 5.6 -18.9 13.7 16.5 -1.4 28.8 -7.5 10.2 89.4 - 17.4 23.7 19.8 10.9 26.5 20.1 1.1 7.2 - 16.6 4.1 34.4 6.1 50.2 -5.5 31.8 9.5 28.9 78.4 10.3 26.1 35.1 1.2 -4.4 -1.4 14.2 9.6 -47.3 48.7 120.5 -8.4 27.4 20.4