Question: please answer all parts, it is one longer question Consider the rate of return of stocks ABC and XYZ b. Which stock has greater dispersion


Consider the rate of return of stocks ABC and XYZ b. Which stock has greater dispersion around the mean return? XYZ ABC c. Caiculate the geometric average returns of each stock. What do you conclude? (Do not round intermedlate colculations. Round your answers to 2 decimal ploces.) d. If you were equally likely to earn a return of 20%,10%,12%,6%, or 2% in each year (these are the five annual returns for stock ABC). what would be your expected rate of return? (Do not round intermediote calculations.) e. What if the five possible outcomes were those of stock XYZ
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
