Over the last 10 years four mutual funds all had the same mean rate of return, 12%. These mutual funds haddifferent standard deviations as follows: Mutual Money 8%, Co-joined Investments 6%, Together Fund 4%, Allfor One Fund 9%. Which mutual fund investment is the most consistent in rate of return?
A) Together Fund
B) Mutual Money
C) Co-joined Investments
D) All for One Fund

Question

Quizplus · Accepted Answer

The most consistent rate of return is indicated by the lowest standard deviation, which means the returns vary less from the mean. Together Fund, with a 4% standard deviation, is the most consistent.

Over the Last 10 Years Four Mutual Funds All Had