Question: ( b ) The following information describes the expected return and risk relationship for two stocks. table [ [ Year , Stock T ,

(b) The following information describes the expected return and risk relationship for two stocks.
\table[[Year,Stock T,Stock B],[1,0.22,0.10],[2,0.11,0.05],[3,-0.15,-0.11],[4,-0.06,0.04],[5,0.18,0.07]]
(i) Calculate the arithmetic mean rate of return for Stock T and B.
(10 Marks)
(10 Marks)
(iii) Calculate the standard deviation of the annual rate of return for Stock T and B. Which stock is preferable in terms of risk-return trade-off?
(20 Marks)
 (b) The following information describes the expected return and risk relationship

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