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Risk, Return, and Their RelationshipConsider the following annual returns of Estee Lauder and Lowes Companies: Estee Lauder Lowe's Companies Year 1 23.4% 6% Year 2
Risk, Return, and Their RelationshipConsider the following annual returns of Estee Lauder and Lowes Companies:
Estee Lauder | Lowe's Companies | |
Year 1 | 23.4% | 6% |
Year 2 | -26.0 | 16.1 |
Year 3 | 17.6 | 4.2 |
Year 4 | 49.9 | 48.0 |
Year 5 | -16.8 | -19.0 |
Compute each stocks average return, standard deviation, and coefficient of variation. Which stock appears better? Why?(LG9-3, LG9-4)
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