Question

Consider the following information for two investments, A and B: Mean Standard Deviation Investment A 8...

Consider the following information for two investments, A and B:

Mean Standard Deviation

Investment A 8 6

Investment B 9 8

Which investment provides the highest risk?

1. Investment A

2. Investment B

3. There isn't enough information to answer this question.

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Answer #1

Answer:  

Investment B

Investment B provides the highest risk as the standard deviation of investment B is higher.

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