Your long-lost great uncle has recently died, leaving you $5,000 but stipulating that you must invest it in the stock of either XYZ Company or ABC Company.

To compare their rates of return you calculate that over the last 10 years, they had the following means and standard deviations:

Which stock would you choose? Have you done everything possible to help you make this decision? That is, are there any other statistics that would be helpful?

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Mean Standard deviation XYZ (%) 8 2 2 ABC (%) 10 3