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During the past five years, you owned two stocks that had the following annual rates of returns Year Stock X - Stock Y 008 003

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During the past five years, you owned two stocks that had the following annual rates of returns Year Stock X - Stock Y 008 003 2 3 4 - 003 5 o os 0.04 1) Compute anthmetic mean annual rate of retum for each stock. Which stock is most desirable by this measure? b) Compute the standard deviation of the annual rate of return for each stock. By this measure, which is the preferable stock? c) Compute the coefficient of variation for each stock By this relative measure of risk, which stock is preferable Ids Compute the geomet stric mean rate of retum I for each stock Discuss the difference between the arithmetic mean retum and the geometric mean return for each stock. Relate the differences in the mean returns to the standard deviation of the return for each stock

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