During the past 10 years, you owned two stocks that had the following annual rates of returns; Year Stock A Stock B 2009 0.165 0.087 2010 0.153 0.047 2011 -0.115 0.042 2012 0.122 -0.083 2013 0.145 0.057 2014 0.037 0.105 2015 0.114 0.032 2016 -0.165 0.037 2017 -0.113 0.027 2018 0.135 0.017 a) Compute the arithmetic mean annual rate of return for each stock. Which stock is most desirable by this measure? [5 marks] b) Compute the geometric mean rate of return for each stock. Which stock is more desirable by this measure? [5 marks] c) Compute the standard deviation of the annual rate of return for each stock. By this measure which is the preferable stock? [5 marks] d) Compute the coefficient of variation for each stock. By this relative measure of risk, which stock is preferable? [5 marks] During the past 10 years, you owned two stocks that had the following annual rates of returns; Year Stock A Stock B 2009 0.165 0.087 2010 0.153 0.047 2011 -0.115 0.042 2012 0.122 -0.083 2013 0.145 0.057 2014 0.037 0.105 2015 0.114 0.032 2016 -0.165 0.037 2017 -0.113 0.027 2018 0.135 0.017 a) Compute the arithmetic mean annual rate of return for each stock. Which stock is most desirable by this measure? [5 marks] b) Compute the geometric mean rate of return for each stock. Which stock is more desirable by this measure? [5 marks] c) Compute the standard deviation of the annual rate of return for each stock. By this measure which is the preferable stock? [5 marks] d) Compute the coefficient of variation for each stock. By this relative measure of risk, which stock is preferable? [5 marks]