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he board of directors of Gothic Products is considering acquiring one of two companies and is closely examining the management of each company in regard to their inclinations toward risk. During the past five years, the first company’s returns on investments had an average of 28.0 percent and a standard deviation of 5.3 percent. The second company’s returns on investments had an average of 37.8 percent 2 and a standard deviation of 4.8 percent. If we consider risk to be associated with greater relative dispersion, which of these two companies has pursued a riskier strate

he board of directors of Gothic Products is considering acquiring one of two companies and is closely examining the management of each company in regard to their inclinations toward risk. During the past five years, the first company’s returns on investments had an average of 28.0 percent and a standard deviation of 5.3 percent. The second company’s returns on investments had an average of 37.8 percent 2 and a standard deviation of 4.8 percent. If we consider risk to be associated with greater relative dispersion, which of these two companies has pursued a riskier strate

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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The board of directors of Gothic Products is considering
acquiring one of two companies and
is closely examining the management of each company in regard to
their inclinations toward risk. During the past five years, the first
company’s returns on investments had an average of
28.0 percent and a standard deviation of 5.3 percent. The second
company’s returns on investments had an average of 37.8 percent 
2
and a standard deviation of 4.8 percent. If we consider risk to be
associated with greater relative dispersion, which of these two
companies has pursued a riskier strategy

 

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