Donna is looking into investing a portion of her recent bonus into the stock market. While researching different companies, she discovers the following standard deviations of one year of daily stock closing prices. Masterful Pocketwatches: Standard deviation of stock prices =$9.83 Perfect Plungers Plus: Standard deviation of stock prices =$1.22 Based on the data and assuming these trends continue, which company would give Donna a stable long-term investment?

Answer Options

Masterful Pocketwatches; the larger standard deviation indicates that Masterful Pocketwatches has less variability in its closing prices than Perfect Plungers Plus.

Perfect Plungers Plus; the smaller standard deviation indicates that Perfect Plungers Plus has a greater mean closing price than Masterful Pocketwatches.

Masterful Pocketwatches; the larger standard deviation indicates that Masterful Pocketwatches has a greater mean closing price than Perfect Plungers Plus.

Perfect Plungers Plus; the smaller standard deviation indicates that Perfect Plungers Plus has less variability in its closing prices than Masterful Pocketwatches.

Answer rating: 100% (QA)

Here as DOnna needa a stable long term investment opportunity then she mu... View the full answer