You are given the returns for the following three stocks:

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 always hold?

Transcribed Image Text:

Stock A Stock C Year Stock B 8% 3% -24% 2 13 37 14 4 9. 12 4 00 00