THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 8

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The annual percentage returns on two stocks over a 7-year period were as follows:

-Compute an appropriate measure of dispersion for both stocks to measure the risk of these investment opportunities.Which stock is more volatile?

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Definitions:

Collection

The act of gathering items or data together, or an assemblage of objects or information.

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Household

A group of people, often a family, who live together in a single dwelling.

Frequency Distribution

The representation, often in graphical form, of the frequencies within a dataset to show how the values in the set are distributed.