Is there a difference in the variation of the yields of different types of investments? The file CD Rate contains the yields for one-year certificates of deposit (CDs) and five-year CDs for 23 banks in the United States, as of March 20, 2013.
Source: Data extracted from www.Bankrate.com, March 20, 2013.
a. For one-year and five-year CDs, separately compute the variance, standard deviation, range, and coefficient of variation.
b. Based on the results of (a), do one-year CDs or five-year CDs have more variation in the yields offered? Explain.