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Q3.15 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
Q3.15 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 24 banks in the United States, as of June 21, 2012.
Bank | One-Year | Five-Year |
AIG | 0.88 | 1.60 |
Ally | 1.03 | 1.69 |
American | 0.45 | 1.70 |
Ascencia, a division of PBI Bank | 1.00 | 1.56 |
Astoria Federal | 0.10 | 1.25 |
Bank of Internet USA | 0.75 | 1.60 |
Barclay | 1.00 | 1.80 |
Centennial | 0.25 | 1.06 |
Colorado federal | 1.05 | 1.65 |
Discover | 0.90 | 1.75 |
First Internet Bank of Indiana | 0.85 | 1.60 |
Giantbank.com | 0.70 | 1.55 |
Heritage Bank | 0.40 | 1.30 |
IGObanking.com | 0.15 | 0.50 |
Intervest National | 0.55 | 1.75 |
Lone Star | 0.90 | 1.50 |
MetLife | 1.05 | 1.50 |
Nova | 0.50 | 1.00 |
OneWest | 0.85 | 1.65 |
Salem Five | 0.25 | 1.25 |
State farm | 0.40 | 1.26 |
Transportation Alliance | 0.65 | 1.64 |
USAA | 0.86 | 1.66 |
VirtualBank | 0.90 | 1.51 |
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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