The Following Data Show the Yearly Salaries of a Sample

question 14

Short Answer

The following data show the yearly salaries of a sample of MBA graduates.
$\begin{array}{cc}\text { MBA Student }&\text { Salary in } \$ 1,000)\\\mathrm{A} & 78 \\\mathrm{~B} & 87 \\\mathrm{C} & 80 \\\mathrm{D} & 100 \\\mathrm{E} & 104 \\\mathrm{~F} & 88 \\\mathrm{G} & 82 \\\mathrm{H} & 85\end{array}$
a. Compute the mean yearly salary and give your answer in dollars.
b. Compute the standard deviation and give your answer in dollars.
c. Compute the 75th percentile and give your answer in dollars. Fully explain what the value that you have determined indicates.

---

Definitions:

Nonsystematic Standard Deviation

A measure of the variability of an investment's return due to factors specific to the investment or its issuer, excluding broader market influences.

Macroeconomic Risks

Considered broad economic or political uncertainties that could affect the performance of financial markets and investments globally.

Security Selection

The process of choosing individual securities for investment with the goal of achieving the best possible return for a given level of risk.

Passive Strategy

A portfolio decision that avoids any direct or indirect security analysis. See passive management.