Risk, Return, and Their Relationship
Consider the following annual returns of Molson Coors and International Paper:
Molson Coors International Paper
Year 1 25.8 % 6.4 %
Year 2 − 10.3 − 19.4
Year 3 46.0 − 0.4
Year 4 − 10.7 28.5
Year 5 18.1 − 13.0
Compute each stock’s average return, standard deviation, and coefficient of variation. (Round your answers to 2 decimal places.)
Molson Coors International Paper
Average return % %
Standard deviation % %
Coefficient of variation
Which stock appears better?
Molson Coors
International Paper