Over the past 10 years, five mutual funds all had the same mean rate of return. The standard deviations for each of the five mutual funds are shown below.
Capital Investment 5.6%; Vanity: 9.4%, Global Advisor: 8.2%; International Equities: 7.8%, Nomad: 6.4%
Which mutual fund was least consistent in rate of return?
A. Capital Investment
B. Nomad
C. Vanity
D, International Equities
E. Global Advisor

As each of the five mutual funds have same mean rate of return, we go for standard deviation of the rate of return to judge which one has the least consistency among the five.

We know that standard deviation is a measure for variation in a data-set. So more the standard deviation of a data, more is the variation in the data-set and less is the consistency of the data-set.

Here, among the given five mutual fund, we see that "Vanity" has the highest standard deviation (9.4%) in rate of return. So the mutual fund "Vanity" has the least consistency.

ewomazinoade ewomazinoade · Answer 2 · 2022-01-28T11:50:32+01:00

The mutual fund was least consistent in rate of return is vanity.

What is standard deviation?

Standard deviation is a measure of variation. It measures how much a given data differs from the mean. It can be calculated by determining the value of the square root of variance.

When examining data, the data with the lowest standard deviation has the least amount of dispersions around the mean. On the other hand, the data with the highest standard deviation has the highest amount of dispersions around the mean.

To learn more about standard deviation, please check: https://brainly.com/question/12402189