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During the past five years, you owned two stocks that had the following annual rates of return; Year 1 Stock T 0.17 0.11 -0.08 -0.06

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During the past five years, you owned two stocks that had the following annual rates of return; Year 1 Stock T 0.17 0.11 -0.08 -0.06 0.18 Stock B 0.05 0.06 -0.11 2 3 0.01 4 5 0.05 a. Compute the arithmetic mean annual rate of return for each stock. Round your answers to one decimal place. StockT: % Stock B Which stock is most desirable by this measure? Select Vis 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 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 StockT Stock By this relative measure of risk, which stock is preferable? Seed is the preferable stock d. Compute the geometric mean rate of return for each stock Round your answers to three decimal places Stock Stock B

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