Compute arithmetic mean of annual rate

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Question 1: 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

Question 2: 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.

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Reference no: EM132447911

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