Hi everybody,

I leave my solution for this project in the next link:

Have a good day!

Gustavo

Hi everybody,

I leave my solution for this project in the next link:

Have a good day!

Gustavo

Hi,

Can you take a closer look to this conclusion please:

- Explain which investment is more riskier based on the Variance of daily log return between EQR and SBRA ?

EQR is more riskier than SBRA because it has e higher variance.

I just finished this project but I got the opposite conclusion.

Hey! heres my solution, I definitely learned a lot from checking the solution once I finished but heres the raw version I initially came up with. works the same but achieved slightly differently My Solution.

Hey Gustavo

I reached the same results as you did! Glad to see I did well (the actual solution they provided is plain wrong)

One thing to point out, though. You wrote that EQR variance is higher than SBRA.

EQR Var: 6.833881310511606e-05

SBRA Var: 0.00017844226355047074

Notice that EQR Var is much smaller than SBRA Var because of that ‘e-05’ at the end!

I had that same confusion you had. Mathematically though, if A is greater than B, then the sqrt(A) is always greater than sqrt(B). What I am trying to say is: it is absolutely impossible to have VAR(A)>VAR(B) and at the same time have SD(A)<SD(B). If one is greater than the other it will hold true for both var AND stddev. Which makes sense since both measure the same thing (dataset dispersion from the mean)