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

question 78

Multiple Choice

Consider the following annual returns of Estee Lauder and Lowe's Companies: $$\begin{array} { l l l } \hline & \begin{array} { l } \text { Estee } \\\text { Lauder }\end{array} & \begin{array} { l } \text { Lowe's } \\\text { Companies }\end{array} \\\hline 2006 & 20.4 \% & - 6.0 \% \\2005 & - 26.0 \% & 16.1 \% \\2004 & 17.6 \% & 14.2 \% \\2003 & 49.9 \% & 48.0 \% \\2002 & - 16.8 \% & - 19.0 \% \\\hline\end{array}$$ 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

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Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another.

Value Chain Management

The process of managing activities and processes to create value for the customer, from product design to final delivery.

Break-even Analysis

A calculation that determines when a project or business will be able to cover all its expenses and begin to make a profit.

Supply Chain Management

The coordination and management of activities involved in buying, making, and moving a product, from raw material sourcing to production and delivery to the end consumer.