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

Year Stock T Stock B

1 0.19 0.08

2 0.08 0.01

3 -0.13 -0.05

4 -0.03 0.03

5 0.17 0.03

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?

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.

Stock T: %

Stock B: %

By this measure, which is the preferable stock?

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.

Stock T:

Stock B:

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

Compute the geometric mean rate of return for each stock. Round your answers to three decimal places.

Stock T: %

Stock B: %