The historical returns for 2 investmentsA and Bare summarized in the table below for the period 2010

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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.
The historical returns for 2 investments€”A and B€”are summarized in

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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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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