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Consider the rate of return of stocks ABC and XYZ. Required: a. Calculate the arithmetic average return on these stocks over the sample period. (Do

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Consider the rate of return of stocks ABC and XYZ. Required: a. Calculate the arithmetic average return on these stocks over the sample period. (Do not round intermediate calculations. Round your answers to 2 decimal places.) c. Calculate the geometric average returns of each stock. (Do not round intermediate calculations. Round your answers to 2 decimal places.) d. If you were equally likely to earn a return of 23%,10%,16%,6%, or 1%, 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. Round your answers to 2 decimal places.) e. What if the five possible outcomes were those of stock XYZ ? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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