Consider the following annual returns of Clearwater Beer and Bed & Bath Corp:

Compute each stock’s average return, standard deviation, and coefficient of variation. Which stock appears better? Why?

A 1 2 Year 1 3 Year 2 4 Year 3 5 Year 4 6 Year 5 7 Year 6 8 Year 7 9 Year 8 10 Year 9 11 Year 10 B C Clearwater Beer Bed & Bath 4.5% 16.3% -9.7% 36.5% -6.9% 16.2% 7.2% 9.4% -2.5% 9.6% 15.3% -17.5% -0.2% 26.6% -11.1% 6.5% 11.1% 6.8% 8.5% 4.2%