3) You are given the returns for the following three stocks:

See photo

Calculate the arithmetic return, geometric return, and standard deviation for each stock. Do you notice anything about the relationship between an assets arithmetic return, standard deviation, and geometric return? Do you think this relationship will always hold?

Retum Year StockA StockB StockC 5 % 11% 6% 20% 3% 15% 8% 10% 7%