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Is there a difference in the variation of the yields of different types of investments? The file CD Rate contains the yields for one-year certificates
Is there a difference in the variation of the yields of different types of investments? The file CD Rate contains the yields for one-year certificates of deposit (CDs) and five-year CDs for 22 banks in the United States, as of March 12, 2014.
Bank | One-Year | Five-Year |
American | 0.20 | 1.10 |
Bank of Internet USA | 0.55 | 1.35 |
Barclays | 0.80 | 2.15 |
Citizens Trust | 0.20 | 0.60 |
Colorado federal | 1.00 | 1.50 |
Doral | 0.95 | 1.50 |
Discover | 0.95 | 1.65 |
E-Loan | 0.91 | 1.51 |
GE Capital | 1.05 | 2.25 |
GE Capital Retail | 1.05 | 2.05 |
Giantbank.com | 0.85 | 1.38 |
Home Savings | 0.98 | 1.50 |
Heritage Bank | 0.23 | 0.93 |
Intervest National | 0.68 | 1.94 |
Lone Star | 0.60 | 1.41 |
National Republic Bank of Chicago | 0.90 | 1.41 |
Pentagon Federal Credit Union | 0.80 | 1.76 |
Salem Five | 0.25 | 1.15 |
State Farm | 0.30 | 2.05 |
TAB Bank | 0.65 | 1.51 |
USAA | 0.71 | 1.06 |
VirtualBank | 1.01 | 2.02 |
a. For one-year and five-year CDs, separately compute the variance, standard deviation, range, and coefficient of variation. b. Based on the results of (a), do one-year CDs or five-year CDs have more variation in the yields offered? Explain. |
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