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Rose 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. Eye Remember Enterprises: 1. Standard deviation of stock prices =$9.85 The Azure Travel Company: 2. Standard deviation of stock prices =$1.12 Based on the data and assuming these trends continue, which company would give Rose a stable long-term investment?

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hyderali230

Answer:

The Azure Travel Company will give Rose a stable long-term investment.

Explanation:

Because Standard deviation of stock prices is lower that shows this investment is less risky and will be a stable and long term investment as compared to Eye remember Enterprises which has higher standard deviation and its more risky. The investment in the Eye remember Enterprises will not be suitable for long term investment it might be a good option to gain price appreciation in short period by exposing to the high risk.

For the stable long term investment here we prefer Azure travel company.

Calculation of the stable long term investment:

Since the Standard deviation of stock prices should be less that represent this investment should be less risky and will have a stable and long term investment than  Eye remember Enterprises that contains higher standard deviation and is more risky.

Learn more about the investment here: https://brainly.com/question/19339437

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