Question: Using the following returns, calculate the arithmetic average return, the variance, and the standard deviation. Interpret your results in the context of a normal distribution.

  1. Using the following returns, calculate the arithmetic average return, the variance, and the standard deviation. Interpret your results in the context of a normal distribution.

Year

Return

1

14%

2

5%

3

15%

4

0%

5

-44%

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