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Consider the rate of return of stocks ABC and XYZ. Year 1 2 3 4 5 rABC 24% ABC XYZ 10 17 4 1 rXYZ 34% 12 18 1 a. Calculate the arithmetic average return on these stocks over the sample period. (Round your answers to 2 decimal places.) Arithmetic Average O ABC OXYZ -9 % % b. Which stock has greater dispersion around the mean return?

Consider the rate of return of stocks ABC and XYZ. Year 1 2 3 4 5 rABC 24% ABC XYZ 10 17 4 1 rXYZ 34% 12 18 1 a. Calculate the arithmetic average return on these stocks over the sample period. (Round your answers to 2 decimal places.) Arithmetic Average O ABC OXYZ -9 % % b. Which stock has greater dispersion around the mean return?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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.) ABC XYZ Geometric Average % % d. If you were equally likely to earn a return of 24%, 10%, 17%, 4%, or 1% 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 return % le. What if the five possible outcomes were those of stock XYZ?
Transcribed Image Text: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.) ABC XYZ Geometric Average % % d. If you were equally likely to earn a return of 24%, 10%, 17%, 4%, or 1% 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 return % le. What if the five possible outcomes were those of stock XYZ?
Consider the rate of return of stocks ABC and XYZ. Year 1 2 SAWN T 3 4 5 FABC 24% 10 17 4 1 ABC XYZ a. Calculate the arithmetic average return on these stocks over the sample period. (Round your answers to 2 decimal places.) rxyz 34% 12 18 1 -9 Arithmetic Average ABC XYZ % % b. Which stock has greater dispersion around the mean return?
Transcribed Image Text:Consider the rate of return of stocks ABC and XYZ. Year 1 2 SAWN T 3 4 5 FABC 24% 10 17 4 1 ABC XYZ a. Calculate the arithmetic average return on these stocks over the sample period. (Round your answers to 2 decimal places.) rxyz 34% 12 18 1 -9 Arithmetic Average ABC XYZ % % b. Which stock has greater dispersion around the mean return?
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