Question

1. Descriptive statistics ________. quickly describe large amounts of data can predict future stock returns with surprising accuracy help statisticians understand non-numeric information, like colors refer mainly to patterns that can be found in data 2. A 15% return on a stock means that ________. 15% of the original purchase price of the stock returns to the seller at the end of the year 15% of the people who purchased the stock will see a return the stock is worth 15% more at the end of the year than at the beginning the stock has lost 15% of its value since it was originally sold 3. A stock purchased on January 1 cost $4.35 per share. The same stock, sold on December 31 of the same year, brought in $4.75 per share. What was the approximate return on this stock

Answer 1

Answer:

1. quickly describe large amounts of data

2. the stock is worth 15% more at the end of the year than at the beginning

3. 9.2%

Explanation:

Descriptive statistics helps to quickly describe large amounts of data because it simply involves using certain measurement tools to describe the data seen such that patterns emerge that will help in analyzing the data. Examples include, frequency tables and measures of variation like range and standard deviation.

When a stock has a 15% return, it means that the owner is getting 15% more than the amount that the stock cost them therefore showing that the stock is worth 15% more at the end of the year than at the beginning.

The return on the stock is;

= (4.75 - 4.35) / 4.35

= 9.2%