Q3.15 is there a difference in the variation of the yields of different types of investments?
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question.docxQ3.15 is there a difference in the variation of the yields of different types of investments? The file CD Rate contains the yields for one-year certificates of deposit (CDs) and five-year CDs for 24 banks in the United States, as of June 21, 2012.
|
Bank |
One-Year |
Five-Year |
|
AIG |
0.88 |
1.6 |
|
Ally |
1.03 |
1.69 |
|
American |
0.45 |
1.7 |
|
Ascencia, a division of PBI Bank |
1 |
1.56 |
|
Astoria Federal |
0.1 |
1.25 |
|
Bank of Internet USA |
0.75 |
1.6 |
|
Barclay |
1 |
1.8 |
|
Centennial |
0.25 |
1.06 |
|
Colorado federal |
1.05 |
1.65 |
|
Discover |
0.9 |
1.75 |
|
First Internet Bank of Indiana |
0.85 |
1.6 |
|
Giantbank.com |
0.7 |
1.55 |
|
Heritage Bank |
0.4 |
1.3 |
|
IGObanking.com |
0.15 |
0.5 |
|
Intervest National |
0.55 |
1.75 |
|
Lone Star |
0.9 |
1.5 |
|
MetLife |
1.05 |
1.5 |
|
Nova |
0.5 |
1 |
|
OneWest |
0.85 |
1.65 |
|
Salem Five |
0.25 |
1.25 |
|
State farm |
0.4 |
1.26 |
|
Transportation Alliance |
0.65 |
1.64 |
|
USAA |
0.86 |
1.66 |
|
VirtualBank |
0.9 |
1.51 |
a)For one-year and five-year CDs, separately compute the variance, standard deviation, range, and coefficient of variation.
b)Based on the results of (a), do one-year CDs or five-year CDs have more variation in the yields offered? Explain.
