The table given below reports last five years data on annual rates of return (HPYS) on twostocksYearStock A (%)Stock B (%)116-10244030105-2020pre3. Compute the coefficient of variation for each stock. By this measure which stock ispreferable.

Coefficient of variation = Standard Deviation / Mean

The table given below reports last five years data on annual rates of return (HPYS) on two stocks Year Stock A (%) Stock B (%) 16 -10 24 3 40 30 10 -20 20 pre 3. Compute the coefficient of variation for each stock. By this measure which stock is preferable.

The table given below reports last five years data on annual rates of return (HPYS) on two stocks Year Stock A (%) Stock B (%) 16 -10 24 3 40 30 10 -20 20 pre 3. Compute the coefficient of variation for each stock. By this measure which stock is preferable.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 1P

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Question

The table given below reports last five years data on annual rates of return (HPYS) on two
stocks
Year
Stock A (%)
Stock B (%)
1
16
-10
24
40
30
10
5
-20
20
pre
3. Compute the coefficient of variation for each stock. By this measure which stock is
preferable.

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