Question: For small-cap stocks, if arithmetic average was 20% and the standard deviation were reported to be 10%, what would be the approximate geometric average return

For small-cap stocks, if arithmetic average was 20% and the standard deviation were reported to be 10%, what would be the approximate geometric average return for these small-cap stocks?

A.

Approx. 19.5%

B.

Approx. 12.5%

C.

Approx. 9.5%

D.

Approx. 15.5%

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