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Consider the rate of return of stocks ABC and XYZ. Year r ABC r XYZ 1 22% 38% 2 9 11 3 19 19 4
Consider the rate of return of stocks ABC and XYZ.
| Year | rABC | rXYZ |
|---|---|---|
| 1 | 22% | 38% |
| 2 | 9 | 11 |
| 3 | 19 | 19 |
| 4 | 6 | 0 |
| 5 | 1 | 11 |
a. Calculate the arithmetic average return on rABC and rXYZ stocks over the sample period. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
. b. Which stock has greater dispersion around the mean return? rABC or rXYZ.
c. Calculate the geometric average returns of each stock. rABC and rXYZ
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