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

Have a good day!


Can you take a closer look to this conclusion please:

Compare the Variance of Daily Log Return between EQR and SBRA

  1. 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)



here is my project