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Question The historical returns for two investments

Question : Question The historical returns for two investments : 5837

Question

The historical returns for two investments A and B are summarized in the table below for the period 2013 to 2017 Investment A B Year Rate of Return 2010 19.2% 7.5% 2011 1.6% 10.0% 2012 10.6% 12.5% 2013 25.1% 14.8% 2014 5.5% 17.2% Average 12.4% 12.4% . Use the data to answer the questions that follow. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.). Use the data to answer the questions that follow. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) 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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