From the prices of shares X and Y below, find out which is more stable in value:

Asked by Pragya Singh | 1 year ago |  101

##### Solution :-

Variance for y =

$$\dfrac{1}{n^2}[ N\displaystyle\sum y_i^2-(\displaystyle\sum y_i)^2]$$

$$\dfrac{1}{10}\times 40=4$$

Standard deviation (σ2) = $$\sqrt{Variance}$$

$$\sqrt{4}=2$$

CV (shares X) =

$$\dfrac{σ_2}{y}\times 100$$ = $$\dfrac{2}{105}\times 100$$

= 1.9 = 11.58

C.V. of prices of shares X is greater than the C.V. of prices of shares Y.

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

Answered by Pragya Singh | 1 year ago

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