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    Assingment MGT 201

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    mudassar saeed
    This document contains data and calculations for two companies - Company A and Company B. For Company A, it calculates the average return over 5 periods as 3.84%, the standard deviation as 7.18%, and the coefficient of variation as 1.87. For Company B, it calculates the average return as 4.95%, the standard deviation as -4%, and the coefficient of variation as -0.808. It concludes that while Company A has a higher standard deviation, Company B has a lower coefficient of variation and is therefore less risky.

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    Assingment MGT 201

    Uploaded by

    mudassar saeed
    23 views1 page
    This document contains data and calculations for two companies - Company A and Company B. For Company A, it calculates the average return over 5 periods as 3.84%, the standard deviation as 7.18%, and the coefficient of variation as 1.87. For Company B, it calculates the average return as 4.95%, the standard deviation as -4%, and the coefficient of variation as -0.808. It concludes that while Company A has a higher standard deviation, Company B has a lower coefficient of variation and is therefore less risky.

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    This document contains data and calculations for two companies - Company A and Company B. For Company A, it calculates the average return over 5 periods as 3.84%, the standard deviation as 7.18%, and the coefficient of variation as 1.87. For Company B, it calculates the average return as 4.95%, the standard deviation as -4%, and the coefficient of variation as -0.808. It concludes that while Company A has a higher standard deviation, Company B has a lower coefficient of variation and is therefore less risky.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    23 views1 page

    Assingment MGT 201

    Uploaded by

    mudassar saeed
    This document contains data and calculations for two companies - Company A and Company B. For Company A, it calculates the average return over 5 periods as 3.84%, the standard deviation as 7.18%, and the coefficient of variation as 1.87. For Company B, it calculates the average return as 4.95%, the standard deviation as -4%, and the coefficient of variation as -0.808. It concludes that while Company A has a higher standard deviation, Company B has a lower coefficient of variation and is therefore less risky.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    COMPANY A

    Period r (r-average return) (r-average return)^2

    t1` 6.63 6.43-3.84 6.7081


    t2 -519 -5.19-3.84 81.5409
    t3 6.61 6.61-3.84 7.670
    t4 2.60 2.6-3.84 1.5376
    t5 -6.61 -6.61-3.84 109.2
    Avg. return=3.84 206.65

    S.D =√(r-average return) ^2/n-1

    S.D=√206.65/5-1=7.18

    C.V=S.D/Average return=(7.18)/3.84=1.87

    Company B

    r p r *p (r-r^)*2×p

    T1 0.16 0.15 0.024 0.015


    T2 -0.01 0.2 -0.002 -0.0119
    T3 0.05 0.25 0.0125 0.000125
    T4 0.08 0.30 0.024 0.00915
    T5 -0.09 0.1 -0.009 -0.01395
    r^=0.0495 Variance=-0.0016

    S.D=√-0.0016=-0.04 or -4%

    C.V=-0.04/0.0495=-0.808

    Part C. Although S.D of stock A is higher but C.V is also higher so the stock B is less risky

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