Investing in stocks can be risky. Depending on the amount invested, a person stands to lose or gain a significant amount of money. Because of this, people use various metrics and measures to determine whether or not to invest in a specific stock.
You have been given $5000 to invest in any stock on any stock exchange. Select any stock from any exchange. Using ten different stock prices over the past month, calculate the mean price of the stock, the range of the ten stock prices, and the standard deviation.
Because the standard deviation is a measure of variation, based on the standard deviation explain why or why not you would invest in this particular stock.
*Example Template
Snap Inc. Ticker Symbol SNAP
Date Close Price Deviation Deviation Squared
Feb. 27th $16.32 -2.105 4.431025
Feb 26th $17.09 -1.335 1.782225
Feb 23rd $17.45 -.975 .950625
Feb 22nd $17.51 -.915 .837225
Feb 21st $18.64 .215 .046225
Feb 20th $18.93 .505 0.255025
Feb 16th $20.42 1.995 3.980025
Feb 15th $19.75 1.325 1.755625
Feb 14th $19.56 1.135 1.288225
Feb 13th $18.58 .155 .024025
Stock Price Mean = 18.425
Range of 10 day data set = .1
Avg Standard Deviation squared = 1.535025
Standard Deviation = 1.23896126


0 comments