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6. (15 points) Below are historical returns (%) of Wal-Mart (WMT) and XOMA Lid. OXOMA) over the past years. Year WMT XOMA a. Calculate arithmetic

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6. (15 points) Below are historical returns (%) of Wal-Mart (WMT) and XOMA Lid. OXOMA) over the past years. Year WMT XOMA a. Calculate arithmetic mean return of both stocks. Interpret the number b. Calculate geometric mean return of both stocks. Interpret the number. RMWNT = RCMXOMA C. Calculate standard deviations of both stocks Own = ORONA d. Based on c., determine which stock is riskier. Circle one: WMT XOMA e. Does the risk-return tradeoff hold in this case? Circle one: YES

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