Over the past 10 years, Fund A recorded annual returns between 2 % and 20 % (range 18…

MATHEMATICS · Subjective · CBSE · Mathematics · Statistics · Statistics

Problem

Over the past 10 years, Fund A recorded annual returns between 2 % and 20 % (range 18 %) with a standard deviation of 4 %. Fund B recorded returns between 4 % and 29 % (range 25 %) with a standard deviation of 3 %. An investor claims that Fund B is riskier solely because it has the larger range. Is this claim reliable? Give a brief reason.

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