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which company would give Donna a stable long-term investment assuming the trends continue given the following information. Masterful Pocketwatches: Standard deviation of stock prices =$9.62 El Lobo Malo Incorporated: Standard deviation of stock prices =$1.22

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Answer:

The Azure Travel Company would give Donna a stable long-term investment.

The Azure Travel Company would give Donna a stable long-term investment. Explanation:In finance, standard deviation (SD) is used to measure the level of risk of an investment. The purpose of SD is to know the market volatility or variability of an investment from its average market price when the SD is applied to the annual rate of return of that particular investment. The higher the standard deviation, that is when there is a wild movement of prices of an investment, the investment will be risky.From the question, Perfect Plungers Plus the standard deviation of stock prices of Perfect Plungers Plus which is $9.87 is higher than the standard deviation of stock prices of Azure Travel Company which is $1.12.This implies that the stock of Perfect Plungers Plus is riskier and more volatile than the stock of the Azure Travel Company. Therefore, the Azure Travel Company would give Donna a stable long-term investment.

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