Consider the rate of return of stocks ABC and XYZ.

Year	rABC		rXYZ
1	22	%	36	%
2	10		10
3	19		17
4	3		0
5	1		-8

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 average
rABC	%
rXYZ	%

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

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 average
rABC	%
rXYZ	%

d-1.	If you were equally likely to earn a return of 22%, 10%, 19%, 3%, 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 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 36%, 10%, 17%, 0%, or -8%, 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

%