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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 xYZ
Requires:
a. Caiculate the arithmetic wwerage return on these snocks cver the sample period. (Do not round Intermedlate csiculetions. Round
your answers to 2 encimel places.)
b. Wrich stock has greater disperson around the mean retum?
x,2
ABC
places.)
d. If you were equally likely to eam a return of 24%,13%,14%,3%, or 3%, 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 2 decimal placti.)
Depuctad rabe of raturn
What if the five possible outcomes were those of stock XYZ?(Do not round Intermed ate colculatlons. Fiound your onswers to 2
decimal plsces.)
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