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Given the following historical returns (HPR): Year Return 2017 18% 2018 -6% 2019 30% 2020 18% Calculate the arithmetic mean. Calculate the geometric mean. Is

Given the following historical returns (HPR):

Year

Return

2017

18%

2018

-6%

2019

30%

2020

18%

  1. Calculate the arithmetic mean.
  2. Calculate the geometric mean.
  3. Is the geometric mean lower or higher than the arithmetic mean?
  4. Under what circumstances would the geometric mean equal the arithmetic mean?
  5. Calculate the historical standard deviation ().

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