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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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