Essay is always a headache!
Send us your paper details now
We'll find the best professional writer for you!

Comparing Investments.

Comparing Investments.
1. What concept does the mean of a discrete random variable generalize?
Comparing Investments. Suppose that the random variables X and Y represent the amount of return on two different investments. Further suppose that the mean of X equals the mean of Y but that the standard deviation ofX is greater than the standard deviation of Y.
a. On average, is there a difference between the returns of the two investments? Explain your answer.
b. Which investment is more conservative? Why?

Leave a Reply

Your email address will not be published. Required fields are marked *