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please help me Consider the rate of return of stocks ABC and XYZ. Year 1 2 3 ABC XYZ FABC 24% 13 14 3 a.
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Consider the rate of return of stocks ABC and XYZ. Year 1 2 3 ABC XYZ FABC 24% 13 14 3 a. Calculate the arithmetic average return on these stocks over the sample period. (Round your answers to 2 decimal places.) ABC XYZ EXYS 36% 11 19 1 -10 Arithmetic Average b. Which stock has greater dispersion around the mean return? XYZ -O ABC c. Calculate the geometric average returns of each stock. What do you conclude? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Geometric Average d. If you were equally likely to earn a return of 24%, 13%, 14%, 3%, 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.) Expected rate of retum e. What if the five possible outcomes were those of stock XYZ? Expected rate of return Step by Step Solution
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