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Compute the coefficients of the variation

Problem: The spread in the annual prices of stocks selling for under $10 and the spread in prices of those selling for over $60 are to be compared. The mean price of the stocks selling for under $10 is $5.25 and the standard deviation $1.52. The mean price of those stocks selling for over $60 is $95.20 and the standard deviation $5.28.

Q1. Why should the coefficient of the variation be used to compare the dispersion in the prices?

Q2. Compute the coefficients of the variation. What is your conclusion?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Compute the coefficients of the variation

Reference No:- TGS01451453

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Annual renewal of memberships and payment of fees

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Compute the coefficients of the variation

Reference No:- TGS01451453

Recent Questions Asked Finance Basics

Q : Annual renewal of memberships and payment of fees

Q : What is each bond worth today

Q : What is the expected value of xyz sales for coming year

Q : Expect analysts forecasts for a company

Q : Compute the coefficients of the variation

Q : Determine earnings per share on common stock

Q : Strategies for testing internal controls

Q : Evaluate wal-marts diversification

Q : Prepare the bank reconciliation

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