Can someone help me with statistics homework? i found the mean and standard deviation - now it asks....?

The mean and standard deviation are the same for stock a and b the question is:

Suppose you want to use this history as a guide to making an investment decision for the long run. based on this history, and assuming the standard deviation of return is the appropriate measure of risk, does it make any difference whether you invest wholly in stock A, wholly in stock B, or half in A and half in B? Assume that average return is to be maximized and risk is to be minimized.

If the mean and standard deviation are the same it makes no difference which one you invest in. The risk is the same.

Your teacher has asked a dumb question. It always matters what you invest in. Hence, we call them 'academic'. Look that word up sometime.

I will say there description of the problem is very poor. But, looking at it from a deviation only point, it wouldn't matter which plan you did according to stats. But, in real life no one would invest this way.

contact your teacher.

Tags

　　Startup Capital 　　Sector Fund 　　Seed Money 　　Seed Capital 　　Return Investment 　　Real Money 　　Real Estate Investment 　　Raise Capital

Related information

Is there a way to write off income reported with a 1099-INT?

Unfortunately, there is nothing you can do to change the investment income for 2007. Regardless of what you do (IRA contribution as one answer suggests), you still will have investment income ...

The best (liquid) place to Invest 拢100,000 in the UK today???

Gold seems to be doing pretty well at the moment. Historically, as oil prices have gone up, so has gold. And it seems unlikely that oil prices will go down much. I'm not a financial advisor, ...

Where can i invest 拢25,000 in a small bussiness - if any one here has a good idea let me know?

Why don't you contact the Princes Trust? They will surely put you in touch with small upcoming business ventures that may benefit from cash injections. My brother recieved a grant from them t...

Contributing to an IRA by retiree?

No. You must have "earned income". Earned income is either W2 wages or Self-Employment income.

...

Is you were given 50,000 ( 拢 or $ ) to invest what would you do with it?

A good piece of real estate is the safest over time. Don't go for risky stocks unless you know what you are doing.

...

Small bussiness taxes for 2005?

if youre a sole proprietor then youd file a schedule c on your tax return. did you start your business in 2005? im assuming yes. if you started your business and had "start-up" costs l...

Can we require tax returns for someone who is self-employed and wants to rent a house from us?

I rented for 4 years with my husband and he is self employed as a painting contractor. We rented 2 different properties and neither one asked for tax returns. One did a credit check, the other di...

ASX high risk stocks?

Ok I currently have investment in STI which is Stirling. THey have been developing products and I can't understand why more people are not involved with them. They have suigned several manuf...