CV={(Standard Deviation)/(Mean)}*100%
You are thinking about investing money in the stock market and have narrowed your choices to one of two
stocks: TD Bank or Cenovas Energy. For TD Bank you have the following statistics:
• Mean monthly closing price: $70.00
Sample standard deviation: $6.30
The monthly closing stock prices of Cenovas Energy for the last eight months is shown below:
Closing Stock Price: ($) 18.00 19.00 12.00 16.00 17.50 12.00 7.50 10.00
(a) Calculate the mean stock price of Cenovas Energy.
Answer=$
(b) Calculate the standard deviation for the sample prices of Cenovas Energy.
Answer=$
(c) What is the median stock price for Cenovas Energy?
Answer=$
(d) What is the range in Cenovas Energy's stock price?
Answer=$
(e) Calculate the coefficient of variation for each stock.
TD Bank Answer= %
Cenovas Energy Answer= %
(f) Which stock is riskier and why?