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5. Two investments generated the following annual returns: Investment X Investment Y 2010 10% 16% 2011 20% 18% 2012 30% 15% 2013 20% 20% 2014
5. Two investments generated the following annual returns:
Investment X Investment Y
2010 10% 16%
2011 20% 18%
2012 30% 15%
2013 20% 20%
2014 10% 21%
(a) What is the average annual return on each investment?
(b) What is the standard deviation of the return on investments X and Y?
(c) Based on the standard deviation, which investment was riskier?
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