Problem 8-05

Two investments generated the following annual returns:

	Investment X	Investment Y
20X0	14	%	16	%
20X1	22		26
20X2	30		10
20X3	15		17
20X4	11		22

What is the average annual return on each investment? Round your answers to one decimal place.

The average annual rate of return on X: %

The average annual rate of return on Y: %

What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places.

Standard deviation of X:

Standard deviation of Y:

Based on the standard deviation, which investment was riskier?

-Select-Investment XInvestment YItem 5 was riskier.