Task: Please assist with the given problems. Provide step by step calculations for each.
Year Stock A's Returns (rA) Stock B's Returns (rB)
2000 -18% 14.5
2001 33 21.8
2002 15 30.5
2003 -0.5 -7.6
2004 27 26.3
Problem 1. Calculate the standard deviation for each stock and for the portfolio
Problem 2. Calculate the coefficient of variation for each stock and for the portfolio.
If you were a risk averse investor- which stock is better?