59 points possible Answered: 10/21 Question 7 Suppose you wish to invest money safely and are trying to decide between stock options in tw The average rates of return are the same for both companies but, one company has a much l deviation of its rates of return. a. Which company should you invest in? O The company with the larger standard deviation O The company with the smaller standard deviation b. Why is this the better choice?
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We also need to explain why the chosen option is better. Step 1: Understand the concept of standard deviation in finance. In finance, standard deviation is a measure of the volatility or risk of an investment. A higher standard deviation indicates greater Show more…
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