You are given the returns for the following three stocks: Calculate the arithmetic return, geometric return, and
Question:
Calculate the arithmetic return, geometric return, and standard deviation for each stock. Do you notice anything about the relationship between an asset's arithmetic return, standard deviation, and geometric return? Do you think this relationship will alwayshold?
Transcribed Image Text:
Stock C -20% 41 18 13 Stock B Stock A 12% 12 12 12 12 Year 7% 17 16
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Stock A RA 0 12 0 12 0 12 0 12 0 12 5 1200 or 12 00 Var 1 4 12 12 2 12 12 2 12 12 2 12 12 2 12 12 ...View the full answer
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Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
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