Description of this paper

During the past five years,

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solution


Question

During the past five years, you owned two stocks that had the following annual rates of return;years stock a stock b;1.09.2;2.05.1;3 -.06 -.13;4.04 -.04;5.06.16;Compute the arithmetic mean annual rate of return for each stock.;Which stock is most desirable by this measure?;Compute the standard deviation of the annual return for each stock.;By this measure, which stock is preferable?;Compute the coefficient of variation for each stock.;By this relative measure of risk, which stock is preferable?;Compute the geometric mean return for each stock.;Discuss the difference between the arithmetic mean return and the geometric mean return for each stock.;Discuss the differences in the mean returns relative to the standard deviation of the return for each stock.;Note: The best way to complete the calculations for each question is to load the above information into an excel spreadsheet and complete all calculations using excel formulas. When you turn this portion of the assignment in, it is okay to simply attach the excel workbook.

 

Paper#28231 | Written in 18-Jul-2015

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