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Compute the mean rates of return for the two assets

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Reference no: EM132995986

Question - You have been asked to assist in assessing the relative merit in investing in two alternative securities A and B.

Year Rate of Return (%) Asset A Asset B

5 years ago 11.3 9.4

4 years ago 12.5 17.1

3 years ago 13.0 13.3

2 years ago 12.0 10.0

1 year ago 12.2 11.2

Required -

a. Compute the mean rates of return for the two assets?

b. Calculate the standard deviation of each security.

c. Which asset would you recommend and why?

Reference no: EM132995986

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