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4 Consider the rate of return of stocks ABC and XYZ. Year 20 points YABC 20% 10 12 IXYZ 278 12 17 0 -6 3
4 Consider the rate of return of stocks ABC and XYZ. Year 20 points YABC 20% 10 12 IXYZ 278 12 17 0 -6 3 4 5 2 eBook a. Calculate the arithmetic average return on these stocks over the sample period. (Round your answers to 2 decimal places.) Print Arithmetic Average % | XYZ % Reterences b. Which stock has greater dispersion around the mean return? O XYZ c. Calculate the geometric average returns of each stock. What do you conclude? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Geometric Average ABC XYZ d. If you were equally likely to earn a return of 20%, 10%, 12%, 6%, or 2% in each year (these are the five annual returns for stock ABC). what would be your expected rate of return? (Do not round intermediate calculations.) Expected rate of return
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