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26 October, 04:54

Investment A produced annual rates of return of 4%, 8%, 14% and 6% respectively over the past four years. Investment B produced annual rates of return of 5%, 12%, 8% and 11% respectively over the past four years. Which investment was more risky over the past 4 years?

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  1. 26 October, 05:02
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    A

    Explanation:

    The investment A was more risky, but in general they were both pretty much a risk.

    With both having a produced annual rates of return in under 10%

    Reason for A being the riskier is that his annual rate of return in average was 8%, while B's annual rate was 9%

    Difference may seem small, but for bigger investments 1% can be a deal breaker.
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