problem 1-05

During the past five years, you owned two stocks that had the following annual rates of return: 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? is more desirable because the anthmetic mean annual rate of return is b. Compute the standard deviation of the annual rate of return for each stock. (Use Chapter 1 Appendocif 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? 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. Use the population standard deviation in your computation. Stock T: Stock 8: By this relative measure of risk, which stock is preferabie? is the preferable stock. d. Compute the aeometric mean rate of return for each stock. Round your answers to three decimal places Stock T: During the past five years, you owned two stocks that had the following annual rates of return: 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? is more desirable because the anthmetic mean annual rate of return is b. Compute the standard deviation of the annual rate of return for each stock. (Use Chapter 1 Appendocif 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? 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. Use the population standard deviation in your computation. Stock T: Stock 8: By this relative measure of risk, which stock is preferabie? is the preferable stock. d. Compute the aeometric mean rate of return for each stock. Round your answers to three decimal places Stock T