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Consider the rate of return of stocks ABC and XYZ. Requlred: a. Calculate the arithmetic average return on these stocks over the sample period. (Do
Consider the rate of return of stocks ABC and XYZ. Requlred: a. Calculate the arithmetic average return on these stocks over the sample period. (Do not round Intermedlete calculatlons. Round your answers to 2 declmal pleces.) b. Which stock has greater dispersion around the mean return? ABC XYZ c. Calculate the geometric average retums of each stock. (Do not round Intermedlate calculatlons. Round your answers to 2 declmal pleces.) d. If you were equally likely to earn a return of 23%,12%,17%,3%, 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 Intermedlate calculations. Round your answers to 2 declmal pleces.) e. What if the five possible outcomes were those of stock XYZ ? (Do not round Intermedlete calculatlons. Round your answers to 2 declmal places.) Consider the rate of return of stocks ABC and XYZ. Requlred: a. Calculate the arithmetic average return on these stocks over the sample period. (Do not round Intermedlete calculatlons. Round your answers to 2 declmal pleces.) b. Which stock has greater dispersion around the mean return? ABC XYZ c. Calculate the geometric average retums of each stock. (Do not round Intermedlate calculatlons. Round your answers to 2 declmal pleces.) d. If you were equally likely to earn a return of 23%,12%,17%,3%, 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 Intermedlate calculations. Round your answers to 2 declmal pleces.) e. What if the five possible outcomes were those of stock XYZ ? (Do not round Intermedlete calculatlons. Round your answers to 2 declmal places.)
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