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During the last five years, you owned two stocks that have had the following annual rates of return. A. Compute the arithmetic mean annual return
During the last five years, you owned two stocks that have had the following annual rates of return. A. Compute the arithmetic mean annual return for each stock. (4marks) B. Compute the standard deviation of the annual rate of return for each stock. (6 marks) C. Taking the results of A and B into consideration, which stock is preferable? Why? (2 marks) D. Compute the geometric mean annual return for each stock. ( 8 marks) (Total 20 marks)
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