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PART 3 Rina has narrowed her list to those funds averaging a 1 5 percent or greater return oninvestment per year. That still leaves her
PART Rina has narrowed her list to those funds averaging a percent or greater return oninvestment per year. That still leaves her with several to choose from. Rememberingthat some of the funds are riskier than others, Rina is quick to realize that in some yearsshe may not make percent or more. She may add percent or higher to her totalamount of pension, or she may lose percent of her pension. An average value doesntguarantee that she will make exactly percent a year. An average reflects how wellshe will do when all of the good years gains and bad years losses are combined.Rina has years to work before she retires. While this gives her some time to increaseher wealth, she is concerned that a few bad years could significantly lower the amountof money that she will retire with. To find the funds that have high gains or high losses,she turns her attention to the study of the range and standard deviation.
PART Rina has narrowed her list to those funds averaging a percent or greater return oninvestment per year. That still leaves her with several to choose from. Rememberingthat some of the funds are riskier than others, Rina is quick to realize that in some yearsshe may not make percent or more. She may add percent or higher to her totalamount of pension, or she may lose percent of her pension. An average value doesntguarantee that she will make exactly percent a year. An average reflects how wellshe will do when all of the good years gains and bad years losses are combined.Rina has years to work before she retires. While this gives her some time to increaseher wealth, she is concerned that a few bad years could significantly lower the amountof money that she will retire with. To find the funds that have high gains or high losses,she turns her attention to the study of the range and standard deviation.
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