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4. During the past five years you have owned two stocks that had the following annual rates of return. Year Stock T Stock B WN
4. During the past five years you have owned two stocks that had the following annual rates of return. Year Stock T Stock B WN - 0.19 0.08 -0.12 -0.03 0.15 0.08 0.03 -0.09 0.02 0.04 a. Compute the arithmetic mean annual rate of return for each stock. Which stock is most desirable by this measure? b. Compute the geometric mean (compound) rate of return for each stock. By this measure which stock is most desirable? c. Discuss the difference between the arithmetic mean and geometric mean rates of return for each stock. Which is the best measure of a security's returns over time? Why
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