Problem 1-05 During the past five years, you owned two stocks that had the following annual rates of retum Year 1 2 3 4 Stock T 0.20 0.06 -0.13 -0.04 0.11 Stook 0.00 0.02 -0.10 0.02 0.06 5 a. Compute the arithmetic mean annual rate of return for each stock. Round your answers to one decimal place. Stock Stock B % Which stock is most desirable by this measure? Best is more desirable because the arithmetic mean annual rate of return ist 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. Found your answers to Stock T: Stock B: By this measure, which is the preferable stock? -Sec Dls the preferable stock c. Compute the cooliclant of variation for each stock (Use the Chapter 1 Appendix if necessary.) Do not round Intermediate calculations. Round your answers to four decimal placen. Stock Stock B By this relative measure of risk, which stock is preferable? -Select Dis the preferable stock. d. Compute the geometric mean rate of return for each stock. Round your answers to three decimal places Stock T: Stock