Florida Company (FC) and Minnesota Company (MC) are both service companies. Their stock returns for the past three years were as follows: FC: 5 percent, 15 percent, 20 percent; MC: 8 percent, 8 percent, 20 percent.

Calculate the standard deviations of returns for FC and MC. (Ignore the correction for the loss of a degree of freedom set out in the text.)

• FC: 13.2 percent; MC: 6.9 percent

• FC: 10.8 percent; MC: 5.7 percent

• FC: 6.9 percent; MC: 13.2 percent

• FC: 18.7 percent; MC: 9.8 percent