Q3.15 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.
 

 

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