Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer all parts, thank you! The historical returns for two investments-A and B-are summarized in the following table for the period 2016 to 2020
please answer all parts, thank you!
The historical returns for two investments-A and B-are summarized in the following table for the period 2016 to 2020 , . Use the data to answer the questions that follow. a. On the basis of a review of the return data, which investment appears to be more risky? Why? b. Calculate the standard deviation for each investment's returns. c. On the basis of your calculations in part b, which investment is more risky? Compare this conclusion to your observation in part a. a. On the basis of a review of the return data, which investment appears to be more risky? Why? (Choose the best answer below.) A. The riskier investment appears to be investment B, with returns that vary widely from the average relative to investment A, whose returns show less deviation from the average. B. Investment A and investment B have equal risk because the average returns are the same. C. The riskier investment appears to be investment B, with returns that are closer to the average relative to investment A, whose returns are farther from the average. D. The riskier investment appears to be investment A, with returns that vary widely from the average relative to investment B, whose returns show less deviation from the average. Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started