Over the last 10 years four mutual funds all had the same mean rate of return, 12%. these mutual funds had different standard deviations. the standard deviations for mutual fund a 8%, mutual fund b 6%, mutual fund c 4%, mutual fund d 9%. which mutual fund investment is the most consistent in rate of return?
(a) together fund
(b) all for one fund
(c) co-joined investments
(d) mutual money

(C) Co-joined Investments

Explanation:

As it has a ewer standard deviation than their peers.

It is a more reliable option if the investor is more risk averse.

At more standard deviation, there is more change of both, a higher return than expected or a lower return than expected. Therefore, a more risk-averse will go into less standard deviation while another who is willingly to take the risk will go with another fund which deviation is higher.

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23