What is the riskiness of the frequency of claims as measured by coefficient of variance for Group A? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 0.169 b 0.142 c 0.157 d 0.191 e none of the above
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Analysis of portfolio returns over a 20-year period showed the statistics below. Click here for the Excel Data File (a) Calculate and compare the coefficients of variation. (Round your answers to 2 decimal places.) Investment: Venture funds (adjusted), All common stocks, Real estate, Federal short-term paper Mean Return: 22.0, 12.1, 10.1, 4.3 Standard Deviation: 11.6, 14.6, 18.8, 2.9 (b) Why would we use a coefficient of variation, and why not just compare the standard deviations? The standard deviations are an "absolute", not relative, measure of dispersion. It is best to use the CV when comparing across variables that have different means. Standard deviation can only be compared when the variables have different units of measure. The standard deviations are relative and not absolute measures of dispersion. (c) What do the data tell you about risk and return at that time period? Federal short-term paper has the lowest standard deviation and hence the greatest risk; real estate, the lowest risk. Federal short-term paper has the lowest CV and hence the greatest risk; real estate, the lowest risk. Venture funds have greater risk and lower return than common stocks based on the CV. Venture funds have lower risk and greater return than common stocks based on the CV.
Madhur L.
If the average of a series of values is 12 and their variance is 4, then the coefficient of variation is: a) 14.3% b) 1.43% c) 16.6% d) 1.66%
Which of the following best describes the coefficient of variation of the employee performance data. A. The coefficient of variation is 3.7%, indicating that the data is clustered about the mean. B. The coefficient of variation is 12.7%, indicating that the data is moderately spread about the mean. C. The coefficient of variation is 32.7%, indicating that the data is widely spread about the mean. D. The coefficient of variation is 27.5%, indicating that the data is widely spread about the mean.
Jerelyn N.
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