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Problem 9-33 Risk, Return, and Their Relationship (LG9-3, LG9-4) Consider the following annual returns of Estee Lauder and Lowes Companies: Estee Lauder Lowes Companies Year
Problem 9-33 Risk, Return, and Their Relationship (LG9-3, LG9-4)
Consider the following annual returns of Estee Lauder and Lowes Companies: |
Estee Lauder | Lowes Companies | |||||
Year 1 | 25.4 | % | 8.0 | % | ||
Year 2 | 39.0 | 18.1 | ||||
Year 3 | 19.6 | 6.2 | ||||
Year 4 | 51.9 | 59.0 | ||||
Year 5 | 18.8 | 29.0 | ||||
Compute each stocks average return, standard deviation, and coefficient of variation. (Round your answers to 2 decimal places.) |
Estee Lauder | Lowes Companies | ||
Average return | % | % | |
Standard deviation | % | % | |
Coefficient of variation | |||
Which stock appears better? |
|
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