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You have observed the following Share prices for the past five years. Years Mezan Bank Sitara Peroxide Limited Limited 2021 60 55 2020 50 60

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You have observed the following Share prices for the past five years. Years Mezan Bank Sitara Peroxide Limited Limited 2021 60 55 2020 50 60 2019 55 45 2018 40 45 2017 35 44 Based on these share prices, a) Compute the Arithmetic mean annual rate of return for each stock. Which stock is most desirable by this measure? b) Compute the Geometric mean annual rate of return for each stock. Which stock is most desirable by this measure? c) Compute the standard deviation of the annual rate of return for each stock. d) Compute the standard deviation of the annual rate of return for each stock. By this measure, which is the preferable stock? e) Compute the coefficient of variation for each stock. (Use the Chapter 1 Appendix if necessary.) By this relative measure of risk, which stock is preferable? QUESTION NO. 2 You are considering two assets with the following characteristics. = 0:15 = 0:10 = 0:20 = 0:20 Compute the Portfolio Return, Variance, Standard deviation, and Coefficient of Variation of the Portfolio if the correlation coefficient = -0.40

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