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2. (25pts) Based on the following information, calculate the geometric average return, arithmetic average return, variance, and standard deviation for the stock. Year Return 1

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2. (25pts) Based on the following information, calculate the geometric average return, arithmetic average return, variance, and standard deviation for the stock. Year Return 1 10% 2 -5% 15% 20% Draw and label a graph of a normal distribution using the mean and standard deviation. How many observations are typically required to approach a approach a normal distribution? Compare and contrast the geometric and arithmetic average returns. 3 4

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