# F compute the sample standard deviation for each

• Homework Help
• 4
• 100% (3) 3 out of 3 people found this document helpful

This preview shows page 3 - 4 out of 4 pages.

f) Compute the sample standard deviation for each class rounded to 1 decimal place. Use the process forcomputing the standard deviation for grouped data. No need of showing your work on this paper (you’reexpected to work it on your scratch paper).
What does a smaller standard deviation tell you about the spread of the scores in that class?
8. The standard deviation is often used by investors to measure the risk of a stock or a stock portfolio. The basic idea is that the standard deviation is a measure of volatility
Consider the following two stock portfolios and their respective returns (in percent) over the last six months. Questions: a) Calculate the mean percent returns, range, sample standard deviation and sample variance for the six percent-returns of both stock portfolios. Round your answers to 3 decimal places.
b) Compare the final values of the portfolio during the six-month period. Describe any trend or trends?
c) Compare the range and the standard deviation of the six returns of both portfolios. Which stock portfolio is considered more volatile? Explain why.
• • • 