Question

INSTRUCTIONS: Attempt ALL questions

There are 30 students in a class. Among them, 8 students are learning both Audit and Tax. A total of 18 students are learning Audit. If every student is learning at least one language, how many students are learning Tax in total?

Among a group of students, 50 played cricket, 50 played hockey and 40 played volley ball. 15 played both cricket and hockey, 20 played both hockey and volley ball, 15 played cricket and volley ball and 10 played all three. If every student played at least one game, find the number of students and how many played only cricket, only hockey and only volley ball?

QUESTION THREE

Measures of dispersion are often used in finance as a proxy for risk. Explain.

Answer 1

Q,3

Risk measurement is a very big component of many sectors of the finance industry. While it plays a role in economics and accounting, the impact of accurate or faulty risk measurement is most clearly illustrated in the investment sector.

Knowing the probability that a security—whether you invest in stocks, options, or mutual funds—moves in an unexpected way can be the difference between a well-placed trade and bankruptcy.

Traders and analysts use a number of metrics to assess the volatility and relative risk of potential investments, but the most common metric is standard deviation, which is a type of measure of dispersion.

Followings are the some advantages of using standard deviation as a proxy for risk-

• Standard deviation helps determine market volatility or the spread of asset prices from their average price.
• When prices move wildly, standard deviation is high, meaning an investment will be risky.
• Low standard deviation means prices are calm, so investments come with low risk.