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 40 30 4 10 -20 20 is 2. Compute the standard deviation for each stock. Which stock is preferable by this measure

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 1P: The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market...
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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
2. Compute the standard deviation for each stock. Which stock is preferable by this measure
measure
Transcribed Image Text: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 2. Compute the standard deviation for each stock. Which stock is preferable by this measure measure
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