Problem 3: Here are the annual returns for five different stocks. Determine the expected return and risk for a period of five years for each of the stocks.

Problem 4: a. Find the coefficient of variation (CV) for each of the actions in problem 3. b. Explain which of the investments a risk averse investor would prefer and which a risk lover investor would prefer. Answer clearly and in detail. Show all the computations that led to the result.

Year 20x0 20x1 20x2 20x3 20x4 WMT 12.0% 9.3% 8.2% 10.3% 11.5% ADRE 7.5% 4.3% 8.1% 9.2% 6.1% MSFT 12.3% 12.0% 11.9% 11.8% 12.0% GOOG 13.1% 16.2% 15.7% 18.2% 19.3% BIIB 8.5% 9.1% 9.0% 8.7% 8.8%