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.

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 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