2. Suppose you observe the prices {5, 4, 5, 6, 5}. What are the arithmetic and geometric...
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2. Suppose you observe the prices {5, 4, 5, 6, 5}. What are the arithmetic and geometric averages? Nowyou observe {3, 4, 5, 6, 7}. What are the two averages? What happens to the difference between the two measures of the average as the standard deviation of the observations increases?
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Related Book For 
Derivatives Markets Pearson New International Edition
ISBN: 978-1292021256
3rd Edition
Authors: Robert L. Mcdonald
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