Problem $1-05$

During the past five years, you owned two stocks that had the following annual rates of return:

$\backslash$table$[[$Year$,$Stock T$,$Stock B$],[1,0\mathrm{.}18,0\mathrm{.}10],[2,0\mathrm{.}12,0\mathrm{.}03],[3,-0\mathrm{.}05,-0\mathrm{.}05],[4,-0\mathrm{.}02,0\mathrm{.}01],[5,0\mathrm{.}16,0\mathrm{.}03]]$

a$.$ Compute the arithmetic mean annual rate of return for each stock. Round your answers to one decimal place.

Stock T: $\%$

Stock B: $\%$

Which stock is most desirable by this measure?

is more desirable because the arithmetic mean annual rate of return is places. Answer with the population standard deviation.

Stock T: $\%$

Stock B: $\%$

By this measure, which is the preferable stock? is the preferable stock. population standard deviation in your computation.

Stock T:

Stock B:

By this relative measure of risk, which stock is preferable?

is the preferable stock.

d$.$ Compute the geometric mean rate of return for each stock. Round your answers to three decimal places.

Stock T:

$\%$

Stock B: $\%$