Question: Based on the following information, calculate the geometric average return, arithmetic average return, variance, and standard deviation for the stock. Year Return 1 10% 2
- Based on the following information, calculate the geometric average return, arithmetic average return, variance, and standard deviation for the stock.
| Year | Return |
| 1 | 10% |
| 2 | -5% |
| 3 | 15% |
| 4 | 20% |
Draw and label a graph of a normal distribution using the mean and standard deviation. How many observations are typically required to approach a normal distribution? Compare and contrast the geometric and arithmetic average returns.
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