# Question

The historical returns for 2 investments—A and B—are summarized in the table below for the period 2010 to 2014. 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.

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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