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just part d and e i need help with Required: a. Calculate the arithmetic average return on these stocks over the sample period. b. Which
just part d and e i need help with
Required: a. Calculate the arithmetic average return on these stocks over the sample period. b. Which stock has greater dispersion around the mean return? c. Calculate the geometric average returns of each stock. What do you conclude? d. If you were equally likely to earn a return of 23%,10%,16%,6%, or 1% in each year (these are the five annual returns for stock ABC ), what would be your expected rate of return? e. What if the five possible outcomes were those of stock XYZ? f. Given your answers to parts (d) and (e), which measure of average return, arithmetic or geometric, appears more useful for predicting future performance? Complete this question by entering your answers in the tabs below. If you were equally likely to earn a return of 23%,10%,16%,6%, or 1% in each year (these are the five annual returns for stock ABC ), what would be your expected rate of return? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Required: a. Calculate the arithmetic average return on these stocks over the sample period. b. Which stock has greater dispersion around the mean return? c. Calculate the geometric average returns of each stock. What do you conclude? d. If you were equally likely to earn a return of 23%,10%,16%,6%, or 1% in each year (these are the five annual returns for stock ABC ), what would be your expected rate of return? e. What if the five possible outcomes were those of stock XYZ? f. Given your answers to parts (d) and (e), which measure of average return, arithmetic or geometric, appears more useful for predicting future performance? Answer is not complete. Complete this question by entering your answers in the tabs below. What if the five possible outcomes were those of stock XYZ? Note: Round your answer to 2 decimal placesStep by Step Solution
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