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

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