During the past five years, you owned two stocks that had the following annual rates...
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Accounting
During the past five years, you owned two stocks that had the following annual rates of return: Year Stock T Stock B 1 0.20 0.05 2 0.12 0.01 3 -0.10 -0.09 4 -0.06 0.04 5 0.18 0.02 Compute the arithmetic mean annual rate of return for each stock. Round your answers to one decimal place. Stock T: % Stock B: % Which stock is most desirable by this measure? is more desirable because the arithmetic mean annual rate of return is . Compute the standard deviation of the annual rate of return for each stock. (Use Chapter 1 Appendix if necessary.) Do not round intermediate calculations. Round your answers to three decimal places. Stock T: % Stock B: % By this measure, which is the preferable stock? is the preferable stock. Compute the coefficient of variation for each stock. (Use the Chapter 1 Appendix if necessary.) Do not round intermediate calculations. Round your answers to four decimal places. Stock T: Stock B: By this relative measure of risk, which stock is preferable? is the preferable stock. Compute the geometric mean rate of return for each stock. Round your answers to three decimal places. Stock T: % Stock B: %
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