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During the past five years, you owned two stocks that had the following annual rates of return: Year Stock T Stock B 1 0 .

During the past five years, you owned two stocks that had the following annual rates of return:
Year Stock T Stock B
10.200.08
20.090.02
3-0.09-0.05
4-0.080.01
50.170.05
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?
-Select-
is more desirable because the arithmetic mean annual rate of return is
-Select-
.
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?
-Select-
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. Use the population standard deviation in your computation.
Stock T:
Stock B:
By this relative measure of risk, which stock is preferable?
-Select-
is the preferable stock.
Compute the geometric mean rate of return for each stock. Round your answers to three decimal places.
Stock T:
%
Stock B:
%

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