Fundamentals of Statistics (5th Edition)
Fundamentals of Statistics (5th Edition)
5th Edition
ISBN: 9780134508306
Author: Michael Sullivan III
Publisher: PEARSON
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Chapter B.5, Problem 21AYU

Rates of Returns of Stocks Stocks may be categorized by sectors. Go to www.pearsonhighered.com/sullivanstats to obtain the data file B_5_21 using the file format of your choice for the version of the text you are using. The data represent the one-year rate of return (in percent) for a sample of consumer cyclical stocks and industrial stocks for the period December 2013 through November 2014. Note: Consumer cyclical stocks include names such as Starbucks and Home Depot. Industrial stocks include names such as 3M and FedEx. In Section 11.3, we learned that industrial stocks appear to have a higher mean rate of return. Does this suggest that industrial stocks are riskier as measured by the standard deviation rate of return?

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