Problem 1-05 During the past five years, you owned two stocks that had the following annual rates of return: Year Stock B 0.06 Stock T 0.20 0.07 -0.06 -0.01 0.11 0.02 -0.11 0.01 0.04 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? -Select- is more desirable because the arithmetic mean annual rate of return is -Select- . b. Compute the standard deviation of the annual rate of return for each stock. (Use Chapter 1 Appendix if necessary.) Do not round intermediate calculations. Round your answers to three decimal places. Stock T: Stock B: By this measure, which is the preferable stock? Stock B is the preferable stock. c. Compute the coefficient of variation for each stock. (Use the Chapter 1 Appendix if necessary.) Do not round intermediate calculations. Round your answers to four decimal places. Stock T: Stock B: By this relative measure of risk, which stock is preferable? Stock B 7 is the preferable stock. d. Compute the geometric mean rate of return for each stock. Round your answers to three decimal places. Stock T: 0.05811 % Stock B: 0.145737983 %