Risk, Return, and Their Relationship
Consider the following annual returns of Molson Coors and International Paper:
Molson Coors International Paper
Year 1 20.8 % 5.4 %
Year 2 − 9.3 % − 18.4 %
Year 3 41.0 % − 0.2 %
Year 4 − 8.7 % 27.5 %
Year 5 17.1 % − 12.0 %
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