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The historical returns for two investments A and B are summarized in the table below for the period 2015 to 2019 . Use the data
The historical returns for two investments A and B are summarized in the table below for the period 2015 to 2019 . 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? (1.5 marks) b) Calculate standard deviation and the coefficient of variation for each investment's returns. (3 marks) c) On the basis of your calculations in part b, which investment is more risky? Compare your conclusion to your observation in part a. (3 marks) d) Does the coefficient of variation provide better risk comparison than the standard deviation in the case? Why and why not? (1.5 marks)
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