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Coneider the rate of return of stocks ABC and x Y Z Requires: a . Caiculate the arithmetic wwerage return on these snocks cver the
Coneider the rate of return of stocks ABC and
Requires:
a Caiculate the arithmetic wwerage return on these snocks cver the sample period. Do not round Intermedlate csiculetions. Round
your answers to encimel places.
b Wrich stock has greater disperson around the mean retum?
ABC
places.
d If you were equally likely to eam a return of or in each year these are the five annual returns for stock ABC
whst would be your expected rase of retum? Do not round intermediate celculatiens. Round your anawers to decimal placti.
Depuctad rabe of raturn
What if the five possible outcomes were those of stock XYZDo not round Intermed ate colculatlons. Fiound your onswers to
decimal plsces.
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