Question: c) d) e) Problem 3(9pts) Consider the rate of return on Stock A and Stock B below: a. Calculate the arithmetic average returns for stock

c) d) e)

Problem 3(9pts) Consider the rate of return on Stock A and Stock B below: a. Calculate the arithmetic average returns for stock A and stock B over the 3 years sample period. (2pts) b. Calculate the geometric average returns for stock A and stock B over the 3 years sample period. (2pts) c. What is the expected rate of return for stock A and stock B. (1pt) d. What will be the value of $100 by the end of 2021 if invested in stock A at the beginning of 2019 ? (2pts) c. What will be the value of $100 by the end of 2021 if invested in stock B at the beginning of 2019 ? (2pts)

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