Please, calculate the Variance, Standard Deviation and Coefficient of Variation:
ID: 3179671 • Letter: P
Question
Please, calculate the Variance, Standard Deviation and Coefficient of Variation:
Chabusi Management Quality
Probability
Projected Return
Poor
0.20
0.1
Average
0.40
0.2
Outstanding
0.40
0.3
Variance =
Standard Deviation =
Coefficient of Variation =
Chabusi Management Quality
Probability
Projected Return
Poor
0.20
0.1
Average
0.40
0.2
Outstanding
0.40
0.3
Explanation / Answer
mean return= 0.1*0.20+0.2*0.40+0.3*0.40 = 0.02+0.08+0.08 = 0.18
varaince of return . = (0.1-0.18)2(0.20)+(0.2-0.18)2(0.40)+(0.2-0.18)2(0.40) = 0.0016
standard deviation= 0.04
Coefficient of Variation = standard deviation/mean = 0.04/0.18 = 4/18 = 2/9 = 0.22