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5.20 Comparing Investments. Suppose that the random vari- ables X and Y represent the amount of return on two different investments. Further suppose that the

5.20 Comparing Investments. Suppose that the random vari- ables X and Y represent the amount of return on two different

investments. Further suppose that the mean of X equals the mean

of Y but that the standard deviation of X is greater than the stan- dard deviation of Y .

a. On average, is there a difference between the returns of the two investments? Explain your answer. b. Which investment is more conservative? Why?

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