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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% |
- Calculate the arithmetic mean.
- Calculate the geometric mean.
- Is the geometric mean lower or higher than the arithmetic mean?
- Under what circumstances would the geometric mean equal the arithmetic mean?
- Calculate the historical standard deviation ().
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