Question: Consider the following five monthly returns: 4% 2% 3% 8% 1% a. Calculate the arithmetic average monthly return over this period and express your answer

Consider the following five monthly returns:

4%

−2%

3%

8%

−1%

a. Calculate the arithmetic average monthly return over this period and express your answer as a percentage per month.

b. Calculate the geometric average monthly return over this period.

c. Calculate the monthly variance over this period.

d. Calculate the monthly standard deviation over this period.

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