You are saving money for 10 years before you build a house. You have two investment options available to help you save. The first option, Plan A, produces a return of 8% a year, with a standard deviation of 1%. The second option, Plan B, produces a return of 9% a year, but the standard deviation is 4%. Which plan do you choose? Why?

You are saving money for 10 years before you build a house. You have two investment options available to help you save. The first option, Plan A, produces a return of 8% a year, with a standard deviation of 1%. The second option, Plan B, produces a return of 9% a year, but the standard deviation is 4%. Which plan do you choose? Why?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.3: Measures Of Spread

Problem 4GP

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Question

You are saving money for 10 years before you build a house. You have two investment options available to help you save. The first option, Plan A, produces a return of 8% a year, with a standard deviation of 1%. The second option, Plan B, produces a return of 9% a year, but the standard deviation is 4%. Which plan do you choose? Why?

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