The historical returns for 2 investmentsA and Bare summarized in the table below for the period 2010
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![The historical returns for 2 investmentsA and Bare summarized in](https://dsd5zvtm8ll6.cloudfront.net/si.question.images/image/images7/446-B-C-F-R-A-R(734).png)
a. On the basis of a review of the return data, which investment appears to be more risky? Why?
b. Calculate the standard deviation for each investments returns.
c. On the basis of your calculations in part b, which investment is more risky?
Compare this conclusion to your observation in part a.
Transcribed Image Text:
Year 2010 20 11 2012 2013 2014 Average Rate of Return (%) 19 10 12 14 16 12 10 26 12
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a Investment A with returns that vary widely x from 1 to 26 x appears to be mor...View the full answer
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Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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