Rina$$s company has recently told her that her pension money can now be invested in

several different funds. They have informed all of their employees that it is the

employee$$s decision which of the six risk categories to invest in$.$ The six risk categories

include conservative, secure$,$ moderate, balanced, ambitious, and aggressive. Within

each risk category, there are two fund choices. This gives each employee twelve funds

in which to invest capital.

As the names suggest, each fund category attempts to invest the person$$s capital in a

particular style. A conservative fund will find investments that will not expose the

investor$$s money to risk. This category is the $$safest$.$ Money invested here is not

exposed to great potential losses but it is not exposed to great gains either. The

aggressive fund is for investors who believe that when nothing is ventured, nothing is

gained. It takes the greatest risks. With this fund, investors have the potential to make

great gains with their capital. Of course, this is also the fund that exposes the investor to

the potential for great losses. In between, the other four categories mix the amount of

risk an investor is subject to$.$

Rina is rather at a loss. In the packet from the investment company she has received

over $150$ pages of information about each of the accounts. For the past three nights,

she has been trying to read it all. Now all of the information is running together in her

head, and she has to make up her mind soon.

Just as she is about to give up and throw a dart at the dartboard, she discovers an

investment performance update $($Table $6\mathrm{.}1$ below$)$ among the many pages of data.

Remembering her statistical knowledge, she decides to study the performance of the

different funds over the past $11$ years. To fully understand the values, she calculates,

she decides to compare those values with the market performance of three market

indicators: treasury bills, the Capital Markets Index, and the Standard & Poor$$s $500$

Index. Investors use these indicators to compare the performance of their investments

against the market