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Consder the rate of retum of stocks ABC and XYZ Required: a. Calculate the arthmetic average retum on these stocks over the sample period b.

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Consder the rate of retum of stocks ABC and XYZ Required: a. Calculate the arthmetic average retum on these stocks over the sample period b. Which stock has greater dispirsion around the mean retum? ABC XYZ c. Calculate the geometric average returns of each stock. (Do not found intermediate calculations. Round your answers to 2 decimal places.) d. If you were equally likely to earn a return of 20%,12%,14%,3% or 1% in each year chese are the five annual retums for stock ABC. What would bo your expected rate of return? (Do not round intermediate calculations) e. What if the five possible outcomec were those of stock XYZ

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