The table given below reports last five years data on annual rates of return (HPYS) on two stocks Year Stock A (%) Stock B (%) 1 16 -10 24 40 30 4 10 5 -20 20 1. Compute the arithmetic mean of the annual rates of return for both stocks. Which stock is preferable using this measure

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter13: Direct Foreign Investment
Section: Chapter Questions
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The table given below reports last five years data on annual rates of return (HPYS) on two
stocks
Year
Stock A (%)
Stock B (%)
1
16
-10
24
40
30
10
5
-20
20
1. Compute the arithmetic mean of the annual rates of return for both stocks. Which stock is
preferable using this measure
Transcribed Image Text:The table given below reports last five years data on annual rates of return (HPYS) on two stocks Year Stock A (%) Stock B (%) 1 16 -10 24 40 30 10 5 -20 20 1. Compute the arithmetic mean of the annual rates of return for both stocks. Which stock is preferable using this measure
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