Question

MAT 154 - GCU

The Statistics ^IXIC Mean Median Std Dev 10.48% 8.43% 30.72% PL 49.60% 46.52% 79.48% The Data Change in Value over past APPL Adj Yearly Change in Value 시xicAdj Yearly over past Date Close Change year Close Change year 13/1/2019 7408.14 344.69 4.88% 172.91 7.65 4.63% 23/1/2018 7063.45 1151.71 19.48% 165.2635 25.96 18.64% 33/1/2017 5911.74 1041.89 21.39% 139.3016 35.81 34.60% 43/1/2016 4869.85-31.03-0.63% 103.4955-12.51-10.78% 53/1/2015 4900.88 701.89 16.72% 116.0067 48.20 71.09% 63/1/2014 4198.99 931.47 28.5196 67.80421 21.01 44.90% 73/1/2013 3267.52 175.95 5.69% 46.79439-10.32-18.07% 83/1/2012 3091.57 310.50 11.16% 5711168 23.91 72.03% 93/1/2011 2781.07 383.11 15.9896 33.19822 10.81 48.30% 10 3/1/2010 2397.96 869.37 56.87% 22.38553 12.37 123.55% 11 3/1/2009 1528.59-750.51-32.93% 10.01348-3.66-26.75% 123/1/2008 2279.1-142.54-5.89% 13.66946 4.82 54.45% 21/3/2007 2421.64 81.85 3.5096 8.850382 2.88 48.13% 14 3/1/2006 2339.79 340.56 17.03% 5.974555 2.01 50.52% 15 3/1/2005 1999.23 5.01 0.25% 3.969383 2.68 208.21% 16 3/1/2004 1994.22 653.05 48.69% 1.287883 0.61 91.23% 17 3/1/2003 1341.17-504.18-27.3296 0.673471-0.45-40.26% 18 3/1/2002 1845.35 5.09 0.28% 1.127373 0.08 7.25% 19 3/1/2001 1840.26-2732.57 -59.76% 1.051167-218-67.50% 20 3/1/2000 4572.83 2111.43 85.78% 3.234293 2.38 277.91% 21 3/1/1999 2461.4 625.72 34.0996 0.85583 0.20 30.68% 32136 15222 342220 2533-3733 776 1185310113 898 2537 75634 221 12345678901 6789

Answer the following:

1. What do the mean, median, and standard deviation represent for each of the two stock?

2. Which stock has the most risk? Why?

3. Which stock has the most reward? Why?

4. What stock would you chose to invest in and why?

Answer 1

mean represent average return

median is the return when sorted

standard deviation represent risk

APPL has most risk as sd is 0.7948 > 0.3072 of IXIC

AAPL has most reward as its mean is 0.496 > 0.1048

I would invest in AAPL

as it has highest reward and its mean/sd ratio is less as compared to IXIC