Question: Over the past 5 years, Nike's average return to shareholders was 25.2% while Lululemon's was 37.9%. Over that period, Nike's standard deviaton of returns was
Over the past 5 years, Nike's average return to shareholders was 25.2% while Lululemon's was 37.9%. Over that period, Nike's standard deviaton of returns was 20.3% and Lululemon' was 39.9%. The risk-free rate averaged 3%. Based on these statistics we can conclude that:
A. Lululemon's stock performed better because its coefficient of variation was 1.05 while Nike's was only 0.81.
B. Lululemon's stock performed better because its average return was 37.9% while Nike only averaged 25.2%.
C. Lululemon's stock performed better because its Sharpe ratio was 0.88 while Nike's was 1.09.
D. Nike's stock performed better than Lululemon because it's coefficient of variation was only 0.81 compared to Lululemon's 1.05.
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