Consider the following annual returns of Clearwater Beer and Bed & Bath Corporation. 1 2 3 4 5 6949 8 10 11 A Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 B Clearwater Beer 16.65 % -9.84 % 36.85 % -7.04 % 16.55% 7.13 % Year 7 9.75 % Year 8 -2.57 % Year 9 9.95 % Year 10 15.23 % C Bed & Bath Average return Standard deviation Coefficient of variation 4.64 % -17.36 % -.27 % 27.65 % -11.45 % 6.85 % 10.01 % 6.94 % 9.90 % 4.34 % Compute each stock's average return, standard deviation, and coefficient of variation. Note: Round your answers to 2 decimal places. Clearwater Beer % % Bed & Bath % %

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Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.