The measures of risk include Geometric Mean Arithmetic Mean Median Variance

Q: Define standard deviation

A: It refers to the variation in the actual observations from the average. Z-Score helps to know how…

Q: For a elght-security portfolio, it is necessary to calculateunique covariances plus variances, -1--…

A: Covariance is the statistical measures which determine the relationship between the returns of two…

Q: Find the variance &Standard deveation of the portfolio

A: Excel Spreadsheet:

Q: Suppose you have mean-variance utility function with a coefficient of risk Aversion-0, which stocks…

A: The risk aversion measures the risk preference. In this case, the investor is risk neutral as his…

Q: Discuss the estimation risk problem of sample mean-variance portfolios and the resampled portfolio…

A: The mean-variance portfolio is known as the Markowitz portfolio. This was described by the famous…

Q: What is the expected return on a two asset portfolio and what are its variance and standard…

A: Two Asset portfolio: The portfolio that has 2 assets is called as two asset portfolio.

Q: Morningstar's Risk-Adjusted Rating most closely resembles which measure? The Treynor Index Jensen's…

A: Financial statements are statements which states the business activities performed by the company .…

Q: Which distribution can be fully described by its expected value and standard deviation? Question 1…

A: Introduction:- The expected value uses assumption to tell us what results to expect in the long run.…

Q: What is the interpretation of the direct-material quantity variance?

A: Direct material quantity variance is a variance analysis tool for manufacturing companies. It shows…

Q: f a stock's variance of return is written as σ2, then its standard deviation will be written as:

A: Standard deviation and variance are the measures of risk and volatility and both are important…

Q: Morningstar's Risk-Adjusted Rating most closely resembles which measure? The Treynor Index Jensen's…

A: Financial statements are statements which states the business activities performed by the company .…

Q: Discuss the difference between a price-weighted index and a value-weighted index. Give one example…

A: "Hi, Thanks for the Question. Since you asked multiple question, we will answer first question for…

Q: Which one of the following measures is relevant for assessing exposure to systematic risk?

A: Systematic Risk: It refers to the risk caused by factors that are not in the control of an…

Q: When determining the riskiness of a stand-alone instrument (not included in a portfolio), which of…

A: The asset risk is classified into 2 terms  One is stand alone risk in which we consider  only the…

Q: What are the two components of the static budget variance? How are they calculated?

A: Definition:   Static budget variance: The static budget variance is the difference between the…

Q: What are quantitative measurements versus non-quantitative measurements with respect to risk?

A: Risk is used to describe the probability or uncertainty related to a future event with a favorable…

Q: What are some quantitative and some qualitative reasons for budget variances?

A: Budget variance is a measure used by entities, government organizations, corporations, or…

Q: The likelihood that an identified precision interval contains the true (but unknown) population…

A:

Q: Define the following terms: Factor risk premium Unit root Random walk with drift…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Explain favourable variance.

A: Definition:   Variance analysis: Variance analysis is the process of evaluating the differences…

Q: Calculate the following and determine if variances are favorable

A: Compute the total standard material cost.

Q: What is the difference between covariance and correlation?

A: Co-variance: A co-variance is nothing but a descriptive measure of linear interaction intensity…

Q: Give the general formulas for determining cost and efficiency variances.

A: Cost variance: Cost variance shows the difference of standard cost and actual costs. Efficiency…

Q: Explain what is meant by and the limits of mean variance analysis when it comes to investment…

A: Mean-Variance Analysis is an investment decision tool technique that is used by investors to make…

Q: explain activity variances and spending variances with example

A: Variance is defined as the difference between the actual and the budgeted or expected amount.…

Q: Total risk can be divided into: standard deviation and variance. standard deviation and covariance.…

A: Risk is the probability of loss. It describes the chance that there will be a negative return or…

Q: What is the sample variance and standard deviation for x =23,17, 15, 30, 25.

A: Sample Variance = ΣX2 - n(Avg X)2/(n - 1) Standard Deviation =√sample Variance

Q: Standard deviation is a statistical measure of the dispersion of returns around the expected value…

A: The standard deviation is a statistical measure that may be used to assess the amount of dispersion…

Q: beta value on risk-return ratio

A: The risk-return ratio measures the return in terms of risk for a specified period of time. The…

Q: Explain the difference between a favorable and an unfavorable variance.

A: Variance: The term variance is used under standard costing system. Variance is actually the…

Q: Consider two assets with expected return R1=0.22,R2=0.55and variance are s1=0.80, s2=0.88 and…

A: Computation of expected return and variance is enumerated as below:

Q: Which of the following is not recognized as a measurement of risk? O median Orange best case/worst…

A: Median and Range are not typically recognized as direct measurements of risk, while the other…

Q: Total risk is measured by _____ and systematic risk is measured by _____. Group of answer choices…

A: Risk and return are fundamental concepts that are closely intertwined. They represent the trade-off…

Q: How does Probability Proportionate to Size (PPS) sampling compare to Classic Variables sampling?

A: Probability Proportionate to Size ( PPS):  This is a form of variable sampling. It does not use…

Q: What is a spending variance and what does it mean?

A: A variance means difference between actual and budgeted amounts. A spending variance is difference…

Q: Beta is which of the following: A) standard deviation. B) total risk. C) Beta is the relationship…

A: option C is correct  Beta is the relationship which is between an investment's return, and the…