Donna is looking into investing a portion of her recent bonus into the stock market. While researching different companies, she discovers the following standard deviations of one year of daily stock closing prices. Garden Statues Express: Standard deviation of stock prices =$1.22=$1.22 El Lobo Malo Incorporated: Standard deviation of stock prices =$9.62=$9.62 Based on the data and assuming these trends continue, which company would give Donna a stable long-term investment? a. El Lobo Malo incorporated; the larger standard deviation indicates that El Lobo Malo incorporated has less variability in its closing prices than Garden Statues Express. b. El Lobo Malo incorporated; the larger standard deviation indicated that El Lobo Malo incorporated has a greater mean closing price than Garden Statues Express. c. Garden Statues Express; the smaller standard deviation indicated that Garden Statues Express has a greater mean closing price than El Lobo Malo incorporated.
Donna is looking into investing a portion of her recent bonus into the stock market. While researching different companies, she discovers the following standard deviations of one year of daily stock closing prices.
Based on the data and assuming these trends continue, which company would give Donna a stable long-term investment?
a. El Lobo Malo incorporated; the larger standard deviation indicates that El Lobo Malo incorporated has less variability in its closing prices than Garden Statues Express.
b. El Lobo Malo incorporated; the larger standard deviation indicated that El Lobo Malo incorporated has a greater mean closing price than Garden Statues Express.
c. Garden Statues Express; the smaller standard deviation indicated that Garden Statues Express has a greater mean closing price than El Lobo Malo incorporated.
d. Garden Statues Express; the smaller standard deviation indicated that Garden Statues Express has less variability in its closing prices than El Lobo Malo incorporated.
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