apter 06: Assignment - An Introduction to Port ack to Assignment Attempts: Keep the Highest: / 12 5. Problem 1-05 eBook Problem 1-05 During the past five years, you owned two stocks that had the following annual rates of return: Year Stock T Stock B UA W N H 0.20 0.07 0.08 0.06 -0.07 0.09 -0.04 0.04 0.18 0.02 a. Compute the arithmetic mean annual rate of return for each stock. Round your answers to one decimal place. Stock T: % Stock B: % Which stock is most desirable by this measure? -Select- + ) is more desirable because the arithmetic mean annual rate of return is (-Select- b. Compute the standard deviation of the annual rate of return for each stock. (Use Chapter 1 Appendix if necessary.) Do not round intermediate calculations. Round your answers to three decimal places. Stock T: % Stock B: % By this measure, which is the preferable stock? -Select- * ) is the preferable stock. c. Compute the coefficient of variation for each stock. (Use the Chapter 1 Appendix if necessary.) Do not round intermediate calculations. Round your answers to four decimal places. Stock T: Stock B: By this relative measure of risk, which stock is preferable? -Select- + is the preferable stock. d. Compute the geometric mean rate of return for each stock. Round your answers to three decimal places. Stock T: % Stock B: Grade it Now Save & Continue