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The following table contains data on the returns of stock A and stock B from 2012 to 2017: Year 2012 2013 2014 2015 2016 2017

The following table contains data on the returns of stock A and stock B from 2012 to 2017:

Year 2012 2013 2014 2015 2016 2017

Return on stock A (%) 9 9 6 8 10 12

Return on stock B (%) 3 4 13 10 14 10

1. Compute the mean return on stock A and the mean return on stock B;

2. Compute the variance of the return on stock A and the variance of the return on stock B;

3. Compute the standard deviation of the return on stock A and the standard deviation of the return on stock B;

4. Compute the coefficient of variation of the return on stock A and stock B;

5. Compute RRC for stock A and stock B; 6. Would you invest in Stock A or Stock B? Why?

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