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.

Answer rating: 100% (QA)

SOLUTION a To calculate the arithmetic average monthly return we add up the five monthly returns and ... View the full answer