Consider the following annual returns of Estee Lauder and Lowe's Companies: Compute each stock's average return,standard deviation,and coefficient of variation.
A) Estee Lauder: 9.02 percent; 17.99 percent; 2.00 and Lowe's Companies: 10.66 percent; 18.99 percent; 1.78
B) Estee Lauder: 9.02 percent; 30.69 percent; 3.4 and Lowe's Companies: 10.66 percent; 18.99 percent; 1.78
C) Estee Lauder: 9.02 percent; 30.69 percent; 3.4 and Lowe's Companies: 10.66 percent; 25.46 percent; 2.39
D) Estee Lauder: 10.7 percent; 17.79 percent; 1.66 and Lowe's Companies: 12.64 percent; 18.99 percent; 1.50

Question

Consider the following annual returns of Estee Lauder and Lowe's Companies:  Compute each stock's average return,standard deviation,and coefficient of variation.
A) Estee Lauder: 9.02 percent; 17.99 percent; 2.00 and Lowe's Companies: 10.66 percent; 18.99 percent; 1.78 
B) Estee Lauder: 9.02 percent; 30.69 percent; 3.4 and Lowe's Companies: 10.66 percent; 18.99 percent; 1.78 
C) Estee Lauder: 9.02 percent; 30.69 percent; 3.4 and Lowe's Companies: 10.66 percent; 25.46 percent; 2.39 
D) Estee Lauder: 10.7 percent; 17.79 percent; 1.66 and Lowe's Companies: 12.64 percent; 18.99 percent; 1.50

Quizplus · Accepted Answer

Solution by spreadsheet:
 11ea8218_299f_b617_bbd8_1d285ce52824_TB1326_00 Lowe's has experienced a higher average return than Estee Lauder's with a lower risk (standard deviation). Thus, it is not a surprise that Lowe's has a better (lower) coefficient of variation. Lowe's was better.

Consider the Following Annual Returns of Estee Lauder and Lowe's