You are given the returns for the following three stocks: Return Year Stock A Stock B Stock C 1 8% 7% -22% 2 8% 15% 35% 3 8% 3% 15% 4 8% 12% 3% 5 8% 3% 9% Calculate the arithmetic...

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Statistics

You are given the returns for the following three stocks:

Return

Year

Stock A

Stock B

Stock C

1

8%

7%

-22%

2

8%

15%

35%

3

8%

3%

15%

4

8%

12%

3%

5

8%

3%

9%

Calculate the arithmetic return,geometric return, and standard deviation for each stock. Do younotice anything about the relationship between an asset’sarithmetic return, standard deviation, and geometric return? Do youthink this relationship will always hold?

Answer & Explanation Solved by verified expert
4.1 Ratings (710 Votes)
STOCK A arithmetic return 008008008008008 5 008 8 variance 14 0080082 0080082 0080082 0080082 0080082 00 standard deviation 0012 00    See Answer
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