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0.29 1 2 3 2. During the past 5 years, you owned two stocks that had the following annual rates of return: Year Stock T

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0.29 1 2 3 2. During the past 5 years, you owned two stocks that had the following annual rates of return: Year Stock T Stock B 0.18 0.18 -0.03 -0.12 -0.15 4 -0.15 0.12 5 0.21 0.09 a. Compute the arithmetic mean annual rate of return for each stock. Which stock is most desirable by this measure? b. Compute the standard deviation of the annual rate of return for each stock. By this measure, which is the preferable stock ? c. Compute the coefficient of variation for each stock (or Shape ratio). By this relative measure of risk, which stock is more preferable ? Assume that ry = 2%

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