Consider the rate of return of stocks ABC and XYZ. Anc EXYZ 1 2 12 16 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.) Arithmetic Average ABC XYZ b. Which stock has greater dispersion around the mean return? O XYZ ABC c. Calculate the geometric average returns of each stock. What do you conclude? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Geometric Average ABC |XYZ % d. If you were equally likely to earn a return of 24%, 9%, 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.) Expected rate of retum % e. What if the five possible outcomes were those of stock XYZ? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected rate of return % f. Given your answers to (d) and (e), which measure of average return, arithmetic or geometric, appears more useful for predicting future performance? Arithmetic Geometric