Question: Problem 1-20 Arithmetic versus Geometric Returns (LO1, CFA1) You are given the returns for the following three stocks: Year 1 2 3 4 5 Stock
Problem 1-20 Arithmetic versus Geometric Returns (LO1, CFA1) You are given the returns for the following three stocks: Year 1 2 3 4 5 Stock A 9% 9 9 9 9 Stock B 7% 13 7 6 12 Stock -20% 31 18 12 4 w Calculate the arithmetic return, geometric return, and standard deviation for each stock. (Do not round intern Enter your answers as a percent rounded to 2 decimal places.) Stock A Stock B Stock C % % Arithmetic return Standard deviation % % Geometric return % %
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