Question
When saving for retirement, two options are presented to you by your financial advisor. Both options will require you to save money for 25 years
When saving for retirement, two options are presented to you by your financial advisor. Both options will require you to save money for 25 years and put $200 each month into the accounts. Both accounts invest your money into the stock market and fluctuate in their final account values and growths. Your financial advisor gives you the following data about the average value in two different accounts after 25 years of investments.
Account A has a mean value of $270,000 with a standard deviation of $3,000.
Account B has a mean value of $290,000 with a standard deviation of $20,000.
a)Which account has less variation in the value of the account after 25 years? Explain your answer.
b)Which account would you invest in and why?
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