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The stocks on ABC Company and XYZ Company have the following returns over the last five years. (10 marks) Year ABC returns XYZ returns 1
The stocks on ABC Company and XYZ Company have the following returns over the last five years. (10 marks) Year ABC returns XYZ returns 1 -0.2 0.2 2 -0.1 0.1 3 0.5 -0.1 4 0.3 0.05 5 0.1 0.08 a. Calculate the average return on ABC. (1 mark) b. Calculate the average return on XYZ. (1 mark) C. Calculate the variance and standard deviation on the returns on ABC. (2.5 marks) d. Calculate the variance and standard deviation on the returns on XYZ. (2.5 marks) e. Using the coefficient of variation (standard deviation/average return) as a measure of comparison between the two stocks, which stock is preferable
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