Compute the Standard Deviation of a Variable from Raw Data $12 \%$

question 45

Multiple Choice

Compute the Standard Deviation of a Variable from Raw Data
-Over the last 10 years four mutual funds all had the same mean rate of return, $12 \%$ . These mutual funds had different standard deviations as follows: Mutual Money 8\%, Co-joined Investments $6 \%$ , Together Fund $4 \%$ , All for One Fund $9 \%$ . Which mutual fund investment is the most consistent in rate of return?

• A) Together Fund
• B) Mutual Money
• C) Co-joined Investments
• D) All for One Fund

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Definitions:

Fair Value Method

An accounting approach where assets and liabilities are valued based on current market prices.

Reported Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, as presented in financial statements.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings as decided by the board of directors.

Fair Value Method

An accounting approach wherein assets and liabilities are priced at their current market value to provide a more accurate valuation on financial statements.