10 points You look at the series of past five years of returns on Stock ABC. and take their simple arithmetic average to forecast the rear wext year. By doing so, you sumul O a Each of the previous five retums is equally likely to be the next year's return Ob. The arithmetic average retum measures what next year's return will be for certain cNegative rotumo are equally likely to occur as positive return of the same magnitude Od. The arithmetic average is the best approach, because it is more conservative than the geometric average Question 1 of 1