the test scores in the other class.
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
the more a stock's returns vary
from the stock's average return, the more volatile the stock.
Consider the following two stock portfolios
and their respective returns (in percent) over the last six months.
Calculate the mean percent returns, range, sample standard
deviation and sample variance for the six percent-returns of both
Round your answers to 3 decimal places.
Compare the final values of the portfolio during the six-month period.
Describe any trend or trends?
Compare the range and the standard deviation of the six returns of both portfolios.
portfolio is considered more volatile?