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Module 3 Statistical Measures of asset Return - Coggle Diagram
Module 3
Statistical Measures of asset Return
LOS2:
Calculate and interpret
: mesures of Dispertion
MAD (Absolute value of dipersion over N)
Variance and Standad deviation
Coeffecient of variance (sdev/N)
Target downside variation sum (deviation )^2/n-1
LOS1:
Calculate and interpret
mesure of central tendancy location
Mode
Median (Bimodal )
Mean
Dealing with Outliers
Remove exterme values with Trimmed mean
Substitute Winsorized mean
Keep the outlier
Location measures
Percentile /quartile /quintile /decile/interquartile range
Magic Formula
(1+n)*Y/100 :warning:
:warning:Always Order the data
LOS3
: Interpret and evaluate skewness and kurtosis and corellation
Mean=Mode
mean >meadian positively skewed
Mean <median negatively skewed
LOS 4:
interpret correlation between two variables to address an investment
problem
Covariance and Correlation -
