1.) Elliott Dumack must earn a minimum rate of return of 11% to be adequately compensated for the risk for the following investment:

Inital Investment	$14,000
End of Year	Income
1	$6,000
2	$3,000
3	$5,000
4	$2,000
5	$2,100

2.) The historical returns for two investmentsA and Bare summarized in the following table for the period 2013 to 2017. Use the data to answer the questions that follow:

	A	B
Year	Rate of Return	Rate of Return
2013	19%	8%
2014	1%	10%
2015	10%	12%
2016	26%	14%
2017	4%	16%
Average	12%	12%

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 investment's 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.