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

Year	Stock T		Stock B
1	0.15		0.08
2	0.06		0.02
3	-0.05		-0.09
4	-0.05		0.04
5	0.10		0.03

1. 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

• .

• 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?

• 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?

• 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: %