Question

Translate MRT and found the shape of PPC
MRT
o
1
Y
15
13
Q
3
2
3
4
all
8 |
4/1
6/1
6
4
o
=
6​

Answer 1

Answer:

Variance(σ

2

2

)=

n

1

i=1

∑

10

(Y

i

−

Y

ˉ

)

2

=

10

1

×40=4

∴ Standard deviation (σ

2

)=

4

=2

Since, the variance of prices of share X is greater than that of prices of share Y.

So, prices of share X are more variable than prices of share Y.

So, the prices of shares Y are more stable than the prices of share X.