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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?

Lowes Companies
Estee Lauder

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