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During the past five years, you owned two stocks that had the following annual rates of retum: a. Compute the anthmetic mean annual rote of

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During the past five years, you owned two stocks that had the following annual rates of retum: a. Compute the anthmetic mean annual rote of return for each stock. Round your answers to one decimal place. Stock T: % Stock 8: Which stock is most desirable by this measure? is more desirable because the orithmetic mean annual rate of return is: b. Compute the standard deviation of the annual rate of retum 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: W Bv this measure, which is the preferable stock? is the preferable stock. c. Compute the coefficient of variation for each stock. (Use the Chapter 1 Appendix it necessary.) Do not roubd intermediate calculations. Found your answers to four decimal alaces. Use the population standard deviation in your computation. Stock T: Stock B ! By this relative measure of risk, which stock is preferable? is the preferable stock: Stock T: \% Stock 8: %

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