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The historical returns for two investmentsA and B are summarized in the following table for the period 2013 to 2017, A B Year Rate of

The historical returns for two investmentsA and B are summarized in the following table for the period 2013 to 2017,

A

B

Year

Rate of Return

2013

22.322.3%

12.412.4%

2014

7.27.2%

14.514.5%

2015

14.114.1%

17.817.8%

2016

28.628.6%

18.118.1%

2017

10.310.3%

19.719.7%

Average

16.516.5%

16.516.5%

. 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?

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.

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