<u>Measures of dispersion are often used in finance as a proxy for risk:</u>
Measures of dispersion are generally used to describe the variability in sample. The three commonly used measures of dispersion are as follows,
- Interquartile range - Difference between the and percentile (also known as the and quartile). The formula is
- Range - Difference between the largest and smallest observation. The formula is
- Standard deviation - SD is the square root of sum of squared deviation from the mean divided by the number of observations. The formula is as follows,
Appropriate usage of measures of dispersion:
Median and interquartile range is used for skewed numerical data, ordinal data or mean. When mean is utilized as a measure of central tendency or symmetric numerical data, SD is used.
Usage in finance:
In finance, the Regression analysis technique helps in explaining the dispersion of dependent variable, that is measured by its variance, with the help of one or more independent variables each of which has positive dispersion. This proves to be a proxy for risk.
Answer:
correct option is d. No, because EVPI is $25, which is less than the consultant's fee of $30
Explanation:
given data
accuracy = 100 %
perfect information = $200
EMV = $175
to find out
Expected Value of perfect Information
solution
we know that Expected Value of perfect Information (EVPI) is the maximum that needs to be paid to obtain perfect information
so
Expected value of perfect information = perfect information - EMV ..........1
put here value we get
Expected value of perfect information = $200 - $175
Expected value of perfect information = $25
so correct option is d. No, because EVPI is $25, which is less than the consultant's fee of $30
Answer: See explanation
Explanation:
The following information can be gotten from the question:
Value of Investment in alpha = $1000 × 10 = $10,000
Weight of Alpha in the total investment would be = 10%
Then, the expected return would be:
= (12% × 90%) + (25% × 10%)
= (0.12 × 0.9) + (0.25 × 0.1)
= 0.108 + 0.025
= 0.133
= 13.3%
Beta will be:
= (1.50 × 90%) + (2 × 10%)
= (1.50 × 0.9) + (2 × 0.1)
= 1.35 + 0.2
= 1.55
Answer:
B. The government requires that each cab has a medallioned (a license to operate). Assuming the number of taxis is less than it would be without a regulation, those taxis in the market may charge a higher-than-competitive price.
Explanation:
In the case when the production limits are applied in order to increased the prices of goods and services so here the government need that each and every cab need a license for its operation also we presume that no of taxis should be lower as it would be with no regulation also those type of taxis could charged the high competitive price
Therefore the option b is correct
One must have resource control.means that one must have power in resource production and the management of the resources.This will ensure that there is sustainable development and growth of the product thus ensuring its success.Resource control also ensures effective utilization of the resources.