Which of the following statements regarding standard deviation is TRUE: Group of answer choices A measure of the dispersion of a random variable The annualised volatility The square root of volatility Always expressed in %
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Which of the following statements regarding standard deviation is TRUE:
Group of answer choices
A measure of the dispersion of a random variable
The annualised volatility
The square root of volatility
Always expressed in %
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- How is the standard deviation of returns calculated?Suppose the gain from an investment is a normal random variable with mean 2 and standard deviation1.25. Compute the VaR for this investment.The expected value, standard deviation of returns, and coefficient o below.) \table[[Asset A],[Possible Outcomes,Probability,Returns (%)
- How are the following used on a stand-alone and a portfolio basis? 1. Standard Deviation 2. Variance 3. CovarianceThe standard deviation measures the _____ of a security's returns over time. Multiple Choice average value frequency volatility mean arithmetic averageThe Sharpe ratio is computed as the average: excess return divided by the variance of the returns () squared deviation divided by the average excess return. equity risk premium divided by the standard deviation. squared deviation divided by the (Number of returns 1
- Which of the following are measurements of risk? range coefficient of variation mean average standard deviation medianCalculate: - Standard Deviation - Beta - Covariancethe variance of stock A is .004, the variance of the market .007 and the covariance between the two is .0026. what is the correlation coefficient?
- The regression analysis is normally depicted as "y = Ax+ B." What does "A" indicate in the equation? A) It is the expected change in the independent variable for a one-unit change in the dependent variable OB) It is the significance level for the test OC) It is the expected change in the dependent variable for a one-unit change in the independent variable OD) The confidence intervalHow do you calculate the value at a node in a binomial tree? A. As a present value of the two possible values from the next period В. Average of the present value of the possible values from the next period OC. Sum of the present values of the two possible values from the next period D. Average of the future values of the two possible values from the next periodWhat is the standard deviation of a random variable q with the following probability distribution? (Do not round intermediate calculations. Enter your answer in numbers not in percentage. Round your answer to 4 decimal places.) Value of q 0 1 2 Probability 0.30 0.22 0.48 Standard deviation
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