Font Paragraph Question 1 Using the following returns data, calculate the arithmetic average returns, the return standard deviations, and the geometric average returns for the stock A, B, and C. Assume the return of stocks are normally distributed. If Mr. Wong owns a portfolio with 50% of stock A, 30% of stock B and 20% of stock C; then there is only a 2.5 percent chance that this portfolio will produce a return less than percent in any one year. (15 Marks) Year A % B% C% 1 -2.54 2.3 -0.9 2 3.56 5.86 2.86 3 -4.54 -2.24 -5.44 4 2.94 5.24 6.2 5 5 1.54 -2.3 -5.5 6 4.54 6.84 4.84 7 2.54 3.84 -3.2 8 4.54 - 12.3 - 15.5 9 2.94 6.24 7.24 Font Paragraph Question 1 Using the following returns data, calculate the arithmetic average returns, the return standard deviations, and the geometric average returns for the stock A, B, and C. Assume the return of stocks are normally distributed. If Mr. Wong owns a portfolio with 50% of stock A, 30% of stock B and 20% of stock C; then there is only a 2.5 percent chance that this portfolio will produce a return less than percent in any one year. (15 Marks) Year A % B% C% 1 -2.54 2.3 -0.9 2 3.56 5.86 2.86 3 -4.54 -2.24 -5.44 4 2.94 5.24 6.2 5 5 1.54 -2.3 -5.5 6 4.54 6.84 4.84 7 2.54 3.84 -3.2 8 4.54 - 12.3 - 15.5 9 2.94 6.24 7.24