Question: You are given the returns for the following three stocks: Calculate the arithmetic return, geometric return, and standard deviation for each stock. Do you notice

You are given the returns for the following three stocks:

Calculate the arithmetic return, geometric return, and standard deviation for each stock. Do you notice anything about the relationship between an asset's arithmetic return, standard deviation, and geometric return? Do you think this relationship will alwayshold?

Stock C -20% 41 18 13 Stock B Stock A 12% 12 12 12 12 Year 7% 17 16

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Stock A RA 012 012 012 012 0125 1200 or 1200 Var 1412 122 12 122 12 122 12 122 12 122 0000000 Stan... View full answer

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