Question: Please show steps thank you. 2. (15 points) Below are historical returns (%) of Wal-Mart (VMT) and XOMA Ltd. (XOMA) over the past five years.

 Please show steps thank you. 2. (15 points) Below are historical

Please show steps thank you.

2. (15 points) Below are historical returns (%) of Wal-Mart (VMT) and XOMA Ltd. (XOMA) over the past five years. Yoar WMT 5 Calculate arithmetic mean return of both stocks. Interpret the number both stocks Interpret the a. b. Calculate geometric mean return of both stocks. Interpret the number Calculate standard deviations of both stocks C. d. Based on c., determine which stock is riskier WMT Circle one XOMA Does the risk-return tradeoff hold in this case? e. YES NO Circle one

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