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Please answer question V QUESTION TIREE (b) Durine thepast flvey cars, you had investments in companies listed on the GSE. The anmual rates of returns
Please answer question V
QUESTION TIREE (b) Durine thepast flvey cars, you had investments in companies listed on the GSE. The anmual rates of returns from the two atocks X and Y are shown in the table below. Compute (i) Compute the arithmetic mean annual rate of retum for each stock. Wmen sture is most desirable by this measure? Explain (ii) Compute the standard deviation of the annual rate of retum for each stock. By this measure whieh stock is preferable? Explain (iii) Compute the coefficient of variation for each stock. By this relative measure, which stock is preferable? Explain (iv) Compute the geometric mean rate of return for each stock. (v) Discuss the difference between the arithmetic mean return and the geometric mean return for each stock Step by Step Solution
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