Question

Over the past 10​ years, five mutual funds all had the same mean rate of return. The standard deviations for each of the five mutual funds are shown below.

Capital​ Investment:

5.25.2​%;

​Vanity:

9.59.5​%;

Global​ Advisor:

7.37.3​%;

International​ Equities:

8.38.3​%;

​Nomad:

10.510.5​%

Which mutual fund was least consistent in rate of​ return?

​(This is a reading assessment question. Be certain of your answer because you only get one attempt on this​ question.)

Choose the correct answer below.

A.

Global AdvisorGlobal Advisor

B.

VanityVanity

C.

NomadNomad

D.

Capital InvestmentCapital Investment

E.

International EquitiesInternational Equities

Answer 1

Ans:

Least consistent in rate of return means,which has largest standard deviation.

Nomad has largest standard deviation out of 5 mutual funds i.e. 10.5%,so Nomad is least consistent in rate of​ return.

Option C is correct(Nomad)