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Consider the rate of return of stocks ABC and XYZ. Year PARC 24 9 16 2 3 XYZ 35% 12 18 1 1 Required: 6.

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Consider the rate of return of stocks ABC and XYZ. Year PARC 24 9 16 2 3 XYZ 35% 12 18 1 1 Required: 6. 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 XYZ b. Which stock has greater dispersion around the mean return? ABC XYZ c. Calculate the geometric average returns of each stock. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Geometric Average ABC XYZ d. If you were equally likely to eam 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 return 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 rohan

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