You have found an asset with an arithmetic average return of 14.10 percent and a geometric average return of 10.54 percent. Your observation period is 50 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years?

Problem 1-20 Arithmetic versus Geometric Returns (LO1, CFA1) You are given the returns for the following three stocks: Stock A Stock B Stock C Year 10% 10 10 10 10 10% 13 15 22% 37 25 10 3 10 Calculate the arithmetic return, geometric return, and standard deviation for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) StockB StockC Stock A Arithmetic return Standard deviation Geometric return 0