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17) The historical returns for two investmentsA and Bare summarized in the following table for the period 2016 to 2020. Use the data to answer

17) The historical returns for two investmentsA and Bare summarized in the following table for the period 2016 to 2020. Use the data to answer the questions that follow.

A

B

Year

Rate of Return

2016

19%

8%

2017

1%

10%

2018

10%

12%

2019

26%

14%

2020

4%

16%

Average

12%

12%

  1. On the basis of a review of the return data, which investment appears to be more risky? Why?
  2. Calculate the standard deviation for each investments returns.
  3. On the basis of your calculations in part b, which investment is more risky? Compare this conclusion to your observation in part a.

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