During the past five years, you owned two stocks that had the following annual rates of return:

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?

is more desirable because the arithmetic mean annual rate of return is

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. Answer with the population standard deviation.

Stock T:

$\%$

Stock B:

$\%$

By this measure, which is the preferable stock?

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. Use the population standard deviation in your computation.

Stock T:

Stock B:

By this relative measure of risk, which stock is preferable?

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:

$\%$