During the past five years, you owned two stocks that had the

During the past five years, you owned two stocks that had the following annual rates of return

Year  Stock ALPHA   Stock BETA

1  0.19  0.08

2  0.08  0.03

3  −0.12  −0.09

4  −0.03  0.02

5  0.15  0.04

Compute the arithmetic mean and  standard deviation of annual rate of return  from stock. For 

each stock, indicate which one is more desirable by this measure.

4+4

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>