Consider the following annual returns (rounded) of Pepsi’s c…
Consider the following annual returns (rounded) of Pepsi’s common stock: Pepsi’s Annual Return (%) 2016 5 2017 15 2018 -8 2019 24 2020 9 a. Compute the average return, standard deviation, and coefficient of variation for Pepsi. Show your work. b. Coca-Cola during the same time period had an average return of 2.40%, a standard deviation of 5.37% and a coefficient of variation of 2.24. Based upon this information for Pepsi and Coca-Cola, which stock is preferred? Explain.