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The historical returns for two investments A and B are summarized in the following table for the period 2 0 1 6 to 2 0
The historical returns for two investments A and B are summarized in the following table for the period to Use the data that follows.
Year Rate of Return
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
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 are closer to the average relative to investment A whose returns are farther from the average.
B
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.
C
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.
D
Investment A and investment B have equal risk because the average returns are the same
The standard deviation for investment A is
Part
The standard deviation for investment B isRound to two decimal places
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