Final answer:
The returns over time in this scenario illustrate the concept of time series analysis. Time series analysis involves studying the pattern and behavior of data over a period of time to make predictions or identify trends.
Step-by-step explanation:
The returns over time in this scenario illustrate the concept of time series analysis. Time series analysis involves studying the pattern and behavior of data over a period of time to make predictions or identify trends. In this case, analyzing the returns over time can help identify any patterns or trends in the data.
To find the expected value for each investment, you would calculate the average return for each investment by summing up the returns and dividing by the number of observations.
To determine the safest investment, you would look for the investment with the lowest variability or standard deviation in returns. This indicates that the investment is more stable and less prone to large fluctuations.
The riskiest investment would be the one with the highest variability or standard deviation in returns. This indicates that the investment is more volatile and has a higher chance of experiencing large fluctuations.
The investment with the highest expected return, on average, would be the one with the highest average return.