Problem 9-34 Risk, Return, and Their Relationship (LG9-3, LG9-4)

Consider the following annual returns of Molson Coors and International Paper:

Molson Coors International Paper Year 1 25.8 % 6.4 % Year 2 10.3 19.4 Year 3 46.0 0.4 Year 4 10.7 28.5 Year 5 18.1 13.0

Compute each stocks average return, standard deviation, and coefficient of variation. (Round your answers to 2 decimal places.)

Molson Coors International Paper Average return % % Standard deviation % % Coefficient of variation

Which stock appears better?

Molson Coors International Paper