# Question

Suppose that the random variables X and Y represent the amount of return on two different investments. Further suppose that the mean of X equals the mean of Y but that the standard deviation of X is greater than the standard deviation of Y.

a. On average, is there a difference between the returns of the two investments? Explain your answer.

b. Which investment is more conservative? Why?

a. On average, is there a difference between the returns of the two investments? Explain your answer.

b. Which investment is more conservative? Why?

## Answer to relevant Questions

The random variable X is the crew size of a randomly selected shuttle mission between April 1981 and July 2000. Its probability distribution is as follows. a. Find and interpret the mean of the random variable. b. Obtain the ...The random variable Y is the sum of the dice when two balanced dice are rolled. Its probability distribution is as follows. a. Find and interpret the mean of the random variable. b. Obtain the standard deviation of the ...One method for deciding among various investments involves the concept of expected utility. Economists describe the importance of various levels of wealth by using utility functions. For instance, in most cases, a single ...Evaluate the following binomial coefficients (a) (b) (c) (d) The National Safety Council publishes information about automobile accidents in Accident Facts. According to that document, the probability is 0.40 that a traffic fatality will involve an intoxicated or alcoholimpaired ...Post your question

0