chapter 3 quiz - numerical descriptions of data\n10 points possible answered: 8/11\nquestion 9\nsuppose you…

chapter 3 quiz - numerical descriptions of data\n10 points possible answered: 8/11\nquestion 9\nsuppose you wish to invest money safely and are trying to decide between stock options in two companies. the average rates of return are the same for both companies but, one company has a much larger standard deviation of its rates of return.\nwhich company should you invest in?\nthe company with the smaller standard deviation\nthe company with the larger standard deviation

chapter 3 quiz - numerical descriptions of data\n10 points possible answered: 8/11\nquestion 9\nsuppose you wish to invest money safely and are trying to decide between stock options in two companies. the average rates of return are the same for both companies but, one company has a much larger standard deviation of its rates of return.\nwhich company should you invest in?\nthe company with the smaller standard deviation\nthe company with the larger standard deviation

Answer

Brief Explanations:

Standard deviation measures the volatility or risk in rates of return. A smaller standard deviation means less variability and more stability in returns, which is better for safe - investment.

Answer:

The company with the smaller standard deviation