Rose 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.
Eye Remember Enterprises: Standard deviation of stock prices
=$9.85
The Azure Travel Company: Standard deviation of stock prices
=$1.12
Based on the data and assuming these trends continue, which company would give Rose a stable long-term investment?
Answer 2 Points
Keyboard Shortcuts
The Azure Travel Company; the smaller standard deviation indicates that The Azure Travel Company has a greater mean closing price than Eye Remember Enterprises.
The Azure Travel Company; the smaller standard deviation indicates that The Azure Travel Company has less variability in its closing prices than Eye Remember Enterprises.
Eye Remember Enterprises; the larger standard deviation indicates that Eye Remember Enterprises has a greater mean closing price than The Azure Travel Company.
Eye Remember Enterprises; the larger standard deviation indicates that Eye Remember Enterprises has less variability in its closing prices than The Azure Travel Company.