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The entire problem solution can be find in the below table:

Stock T Stock B

Rt Rb (Rt-AM)^2 (Rb-AM)^2

0.16 0.08 0.0125 0.0041

0.08 0.03 0.0010 0.0002

-0.12 -0.09 0.0282 0.0112

-0.03 0.02 0.0061 0.0000

0.15 0.04 0.0104 0.0006

Total 0.24 0.08 0.0369 0.0041

Mean (AM) 0.048 0.016 Total 0.0951 0.0202

in % 4.8% 1.6% Total/(n-1) 0.0238 0.0051

SD (Standard dev) 0.1542 0.0711 SQRT of [Total/(n-1)]

in % 15.42% 7.11%

Coefficient of variation 3.21 4.44

Stock T Stock B Geometric mean

Rt Rb (1+Rt) (1+Rb)

0.16 0.08 1.16 1.08

0.08 0.03 1.08 1.03

-0.12 -0.09 0.88 0.91

-0.03 0.02 0.97 1.02

0.15 0.04 1.15 1.04

Multiplication 1.22980 1.07383

0.2 0.2

Geometric mean 1.042 1.014

in % 4.22% 1.43%

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