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(Solved): During the past six years, you had two stocks that had the following annual rates of return: Stock ...



During the past six years, you had two stocks that had the following annual rates of return:

Stock T Stock B

12% 10%

15 12

12 8

8 6

6 4

1 2

Compute the average returns for the two stocks. Which is the preferable stock?

Compute the standard deviations for the two stocks. Which is the preferable stock?

Compute the coefficients of variation for the two stocks. Which is the preferable stock?



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Stock A average return = 9%Stock B average return = 7%Stock A is prefered.Stock A standard deviation = 5.06%Stock B standard deviation = 3.74%Stock B
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