During the past five years, you owned two stocks that had the following annual rates of return Year  Stock ALPHA   Stock BETA 1  0.19  0.08 2  0.08  0.03 3  ?0.12  ?0.09 4  ?0.03  0.02 5  0.15  0.04 Compute the arithmetic mean and  standard deviation of annual rate of return  from stock. For  each stock, indicate which one is more desirable by this measure. 4+4

During the past five years, you owned two stocks that had the following annual rates of return
Year  Stock ALPHA   Stock BETA
1  0.19  0.08
2  0.08  0.03
3  ?0.12  ?0.09
4  ?0.03  0.02
5  0.15  0.04
Compute the arithmetic mean and  standard deviation of annual rate of return  from stock. For 
each stock, indicate which one is more desirable by this measure.
4+4