Consider the rate of return of stocks ABC and XYZ. Year 1 2 3 4 5 20% 12 14 3 1 XYZ 30% 12 18 0 -10 Required: a. Calculate the arithmetic average return on these stocks over the sample period. Arithmetic Average % XYZ % b. Which stock has greater dispersion around the mean return? XYZ ABC c. Calculate the geometric average returns of each stock. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Geometric Average % XYZ % nces d. If you were equally likely to earn a return of 20%, 12%, 14%, 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.) Expected rate of return % e. What if the five possible outcomes were those of stock XYZ? Expected rate of return % f. Given your answers to (d) and (e), which measure of average return, arithmetic or geometric, appears more useful for predicting future performance? Geometric Arithmetic