THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 306

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A recent survey asked respondents about their monthly purchases of raffle tickets.The monthly expenditures,in dollars,of ten people who play the raffle are 23,15,11,20,28,35,13,10,20,and 24.
-Over the past 10 years,the return on Stock A has averaged 8.4% with a standard deviation of 2.1%.The return on Stock B has averaged 3.6% with a standard deviation of 0.9%.Which of the following statements is true?

• A)Stock A has smaller relative variation than Stock B.
• B)Stock B has smaller relative variation than Stock A.
• C)Both stocks exhibit the same relative variation.
• D)Unable to tell with the given information.

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Definitions:

Production Capacity

The maximum output that a company can produce under normal conditions over a certain time period, with its current resources.