Final answer:
The mean stock price of Cenovas Energy is $14.00, the sample standard deviation is approximately $4.20, the median is $14.00, the range is $11.50, and the coefficients of variation are 9% for TD Bank and 30% for Cenovas Energy, making Cenovas Energy the riskier stock.
Step-by-step explanation:
To calculate the mean stock price of Cenovas Energy, you sum up all the given stock prices and divide by the number of prices:
Mean = (18 + 19 + 12 + 16 + 17.5 + 12 + 7.5 + 10) / 8 = 112 / 8 = $14.00.
To calculate the sample standard deviation for Cenovas Energy, you use the formula for standard deviation on the sample data:
S = √[(Σ(x - mean)2) / (n - 1)]
S = √[(42 + 52 + 22 + 22 + 3.52 + 22 + 6.52 + 42) / (8 - 1)]
S = √[(16 + 25 + 4 + 4 + 12.25 + 4 + 42.25 + 16) / 7]
S = √[(123.5) / 7]
S = √(17.64) = $4.20 approx.
The median stock price of Cenovas Energy is the average of the two middle numbers after sorting them in ascending order. Therefore, median = (12 + 16) / 2 = $14.00.
The range in stock price is the difference between the highest and lowest values, so range = 19 - 7.5 = $11.50.
To calculate the coefficient of variation (CV), use the given formula:
Since the coefficient of variation measures risk relative to the mean (higher CV indicates higher risk), Cenovas Energy is riskier because it has a higher CV.