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Please answer all parts, thank you in advance! :) During the past five years, you owned two stocks that had the following annual rates of
Please answer all parts, thank you in advance! :)
During the past five years, you owned two stocks that had the following annual rates of return: Year 1 Stock T 0.16 0.10 Stock B 0.05 0.04 2 3 -0.09 -0.09 4 0.03 -0.07 0.15 5 0.06 a. 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-vis more desirable because the arithmetic mean annual rate of return is -Select- v. b. 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? -Select- is the preferable stock. C. 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? -Select- is the preferable stock. d. Compute the geometric mean rate of return for each stock. Round your answers to three decimal places. Stock T: Stock B: %Step by Step Solution
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