Question: Please only solve for D & E Year 1 2 3 4 5 ABC 24% 13 14 3 3 XYZ 36% 11 19 1 -10

Please only solve for D & E

Please only solve for D & E Year 1 2 3 4

Year 1 2 3 4 5 ABC 24% 13 14 3 3 XYZ 36% 11 19 1 -10 a. Calculate the arithmetic average return on these stocks over the sample period. (Round your answers to 2 decimal places.) Answer is complete and correct. Arithmetic Average ABC 11.40% XYZ 11.40% b. Which stock has greater dispersion around the mean retur? ABC XYZ 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.) Answer is complete and correct. Geometric Average 11.13% 10.31% ABC XYZ 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 retur? (Do not round intermediate calculations.) Answer is complete but not entirely correct. Expected rate of retum 10% e. What if the five possible outcomes were those of stock XYZ? Expected rate of retum %

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