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Cons'der the rete of return of stock. ABC and XYZ. a. Ca culate the arithmetic aversge return on these stocks over the sample period. (Round
Cons'der the rete of return of stock. ABC and XYZ. a. Ca culate the arithmetic aversge return on these stocks over the sample period. (Round your answers to 2 decimal places.) b. Which stock hes grester cispersion sround the meen return? ABC X'Z c. Calculate the geometric sverege returns of esch stack. What do you conclude? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) d. If you were equaly like y to espn a return of 24%,9%,16%,6%, or 1% in esch yesr |these are the five sn avel returns for stock ABC, whit would be your expected rate of return? (Do not round Intermedlate calculatlons.) e. What if the five possible outcomes were thase of stock XYZ? f. Gven your snawers to ports (o) and (e), which messure of svergge return, arithmetic or geometric, appesiz more useful for predicting future performsnce? Arthrmetic Geometric
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