In Finance, and in option pricing in particular, compounding arithmetic average rates of return gives us the wrong result for holding-period-return (HPR) over time. Assume you have calculated monthly average returns for Google over the past 60 months and the simple arithmetic average monthly return was 1.120%. The monthly standard deviation around this mean return of 1.120% was 10.80% /month (hint: no need to annualize - keep everything monthly). Using the formula learned in class (ch. 14 slides), what is the monthly rate of return, also know as the geometric average rate of return? 0.584% 0.617% 0.8839\% 1.339% 1.125%