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3 September, 23:22

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 Pocket Watches: Standard deviation of stock prices = $9.65 Perfect Plungers Plus: Standard deviation of stock prices = $1.02 Based on the data and assuming these trends continue, which company would give Donna a stable long-term investment?

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Answers (2)
  1. 4 September, 00:10
    0
    Perfect Plunges Plus

    Explanation:

    Masterful Pocket watches has a standard deviation of $9,65

    Perfect Plunges Plus has a standard deviation of $1,02

    Standard deviation measures the price variability to closing prices and since Perfect Plunges Plus has a smaller standard meaning it has smaller variability to closing prices than master pocket watches Donna should choose it for her long-term investment.
  2. 4 September, 02:54
    0
    Perfect Plungers Plus is the company that would give Donna a stable long term investment

    Explanation:

    Because it has a low standard deviation than the other company, meaning it has the expected value as a low standard deviation is, also its data is not far from the mean and is not spread out.
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