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Question 8 (12 points) During the past five years, you owned two stocks that had the following annual rates of return: Your Stock T Stock
Question 8 (12 points) During the past five years, you owned two stocks that had the following annual rates of return: Your Stock T Stock B 0.22 0,09 2 0.10 0.04 3 -0.13 -0.11 4 -0 0S 0.03 5 0.15 0.03 1. Compute the expected values of annual rate of return for each stock. Which stock is most desirable by this measure? 2. Compute the standard deviation of the annual rate of return for each stock. By this measure, which is the preferable stock? 3. Compute the coefficient of variation for each stock. By this relative measure of risk, which stock Is preferable? hp C A 5 6 9 e F y O P d h K
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