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Is the standard deviation higher than the beta in a stock's returns?
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Should you use standard deviation or variance when measuing a stocks monthly returns?
Only if your Interested in using Technical Analysis. Otherwise it may not have any effect if the Market is in Volatile movement which is known as weak form efficiency
How are variance and standard deviation used as measures of risk for both a security and a portfolio?
Risk reflects the chance that the actual return on an investment may be very different than the expected return. One way to measure risk is to calculate the variance and standard deviation of the distribution of returns.Consider the probability distribution for the returns on stocks A and B provided below.StateProbabilityReturn onStock AReturn onStock B120%5%50%230%10%30%330%15%10%320%20%-10%The expected returns on stocks A and B were calculated on the Expected Return page. The expected return on Stock A was found to be 12.5% and the expected return on Stock B was found to be 20%.Given an asset's expected return, its variance can be calculated using the following equation:whereN = the number of states,pi = the probability of state i,Ri = the return on the stock in state i, andE[R] = the expected return on the stock.The standard deviation is calculated as the positive square root of the variance.Note: E[RA] = 12.5% and E[RB] = 20%Stock AStock B
What is A portfolio's risk is measured by the weighted average of the standard deviations of the securities in the portfolio It is this aspect of portfolios that allows investors to combine stocks?
Beta.
What are method use in Stock Exchange for calculation Index?
The stock exchange index is a relative measure of the performance of all or a number of stocks that are traded on a stock exchange. it incorporates the return on stocks, their volumes traded and the shares outstanding. there can be a number of indices relating to a single stock exchange that incorporates the returns on a number of companies. they can also be differentiated on the basis of the return on different industries.
How do you invest in property?
stocks or get a loan
Does adding stocks decrease a portfolios standard deviation and risk?
It depends on the standard deviation and risk of the new stock.
Should you use standard deviation or variance when measuing a stocks monthly returns?
Only if your Interested in using Technical Analysis. Otherwise it may not have any effect if the Market is in Volatile movement which is known as weak form efficiency
How are variance and standard deviation used as measures of risk for both a security and a portfolio?
Risk reflects the chance that the actual return on an investment may be very different than the expected return. One way to measure risk is to calculate the variance and standard deviation of the distribution of returns.Consider the probability distribution for the returns on stocks A and B provided below.StateProbabilityReturn onStock AReturn onStock B120%5%50%230%10%30%330%15%10%320%20%-10%The expected returns on stocks A and B were calculated on the Expected Return page. The expected return on Stock A was found to be 12.5% and the expected return on Stock B was found to be 20%.Given an asset's expected return, its variance can be calculated using the following equation:whereN = the number of states,pi = the probability of state i,Ri = the return on the stock in state i, andE[R] = the expected return on the stock.The standard deviation is calculated as the positive square root of the variance.Note: E[RA] = 12.5% and E[RB] = 20%Stock AStock B
Are German stocks higher than us stocks?
yes
An investment consultant reports that the average 12-month return on a random sample of 50 projects was 20.74%. If the standard deviation was 5% for the entire large group of stocks from which the sample of projects was chosen, construct a 95%?
Lok
How do shareholders earn returns from investing in stocks?
they make money by the company that that they have stocks in making a profit over the finanical year
Are 3.9s useful for standard stocks?
Do not understand your question. Please restate in a manner that we can understand. Are you referring to 3.9 engines, and what is standard stocks?
What statement describes a pair of stocks that meet this recommendation?
Investment counselors recommend buying stocks whose returns show a negative correlation in order to minimize the risk of big losses. ANSWER: A stock whose returns tend to increase when the returns of a second stock are decreasing.
What does the price on the stock depend on?
The stock market depends on price fluctation, consumer confiedence, investment, productivity, the correlation of the stocks returns and the markets returns
Why do you choose stocks or bonds?
Both stocks and bonds are investment options available for us as an investor. What we choose depends on what we want. If you want high returns and are ready to take high risk - Go for Stocks If you are satisfied with meager returns like 10% or so and are not willing to take any major risks - Go for Bonds
High return on an investment is associated with?
higher risk. The higher the potential return, the higher the potential risk because there is a greater chance of losing money. High returns often come from investments with higher volatility and uncertainty, such as stocks or speculative assets, which carry greater risks compared to more conservative investments like bonds or savings accounts.
What is meant by preferred stocks?
Perferred stocks are stocks that must be payed out before stockholders have the rights to the asset in general cause the stack in this are more higher in claims.
