Consider three stock funds, which we will call stock funds 1, 2, and 3. Suppose that stock fund 1 has a mean yearly return of 10.93 percent with a standard deviation of 41.96 percent, stock fund 2 has a mean yearly return of 13 percent with a standard deviation of 9.36 percent, and stock fund 3 has a mean yearly return of 34.45 percent with a standard deviation of 41.6 percent. Give a sentence or two to answer the question "which fund is riskier?"

Question

Business

Nick Figueroa

15 March, 13:21

Consider three stock funds, which we will call stock funds 1, 2, and 3. Suppose that stock fund 1 has a mean yearly return of 10.93 percent with a standard deviation of 41.96 percent, stock fund 2 has a mean yearly return of 13 percent with a standard deviation of 9.36 percent, and stock fund 3 has a mean yearly return of 34.45 percent with a standard deviation of 41.6 percent. Give a sentence or two to answer the question "which fund is riskier?"

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Raphael Norris · Answer 1

Stock fund 2 has a mean yearly return of 13 percent with a standard deviation of 9.36 percent, is riskier.

Explanation:

The profit yield is the annualized profit/starting speculation offer value; the capital increases yield is the annualized capital addition/beginning venture offer cost. The yearly all out return is the aggregate of annualized profits and capital increases partitioned by the underlying offer cost.

In a shared store, it offers lower costs, comfort, and enhancement. Financial specialists utilize the accommodation of the common store in order to get a part of the value to their portfolios than purchasing individual offers.