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Consider three stock funds, which we will call Stock Funds 1,2, and 3. Suppose that...

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Finance

Consider three stock funds, which we will call Stock Funds 1,2, and 3. Suppose that Stock Fund 1 has a mean yearly return of 25.00
percent with a standard deviation of 18.90 percent; Stock Fund 2 has a mean yearly return of 7.80 percent with a standard deviation of
6.00 percent, and Stock Fund 3 has a mean yearly return of 19.00 percent with a standard deviation of 19.60 percent.
(a) For each fund, find an interval in which you would expect 95.44 percent of all yearly returns to fall. Assume returns are normally
distributed. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.)
(b) Using the intervals you computed in part a, compare the three funds with respect to average yearly returns and with respect to
variability of returns.
(c) Calculate the coefficient of variation for each fund, and use your results to compare the funds with respect to risk. Which fund is
riskiest? (Round your answers to 2 decimal places.)
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