Consider the rate of return of stocks ABC and XYZ.

Yearr_ABCr_XYZ123%38%28123171845153-13

a.Calculate the arithmetic average return on these stocks over the sample period.(Round you answers to two decimal places. Omit the "%" sign in your response.)

Arithmetic averager_ABC%r_XYZ%

b.Which stock has greater dispersion around the mean?(Click to select)

XYZ

ABC

c.Calculate the geometric average returns of each stock.(Round your answer to 2 decimal places. Do not round intermediate calculations.Omit the "%" sign in your response.)

Geometric averager_ABC%r_XYZ%

d-1.If you were equally likely to earn a return of 23%, 8%, 17%, 5%, or 3%, 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 answer to 2 decimal places.Omit the "%" sign in your response.)

Expected rate of return%

d-2.If you were equally likely to earn a return of 38%, 12%, 18%, 1%, or -13%, in each year (these are the five annual returns for stock XYZ), what would be your expected rate of return?(Do not round intermediate calculations.Round your answer to 2 decimal places.Omit the "%" sign in your response.)

Expected rate of return%