Consider the rate of return of stocks ABC and XYZ. Year FABC PXYZ 2 3 4 5 20% 10 12 6 2 27% 12 17 0 -6 a. Calculate the arithmetic average return on these stocks over the sample period. (Round your answers to 2 decimal places.) Arithmetic Average % ABC |XYZ % b. Which stock has greater dispersion around the mean return? O XYZ O 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 20%, 10%, 12%, 6%, or 2% 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.) Expected rate of return % e. What if the five possible outcomes were those of stock XYZ? Expected rate of return % f. Given your answers to parts (d) and (e), which measure of average return, arithmetic or geometric, appears more useful for predicting future performance? O Arithmetic O Geometric