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We make special note in return calculations-arithmetic vs. logarithmic - why don't we seem to be concerned about that for risk calculations (in particular,

  

We make special note in return calculations-arithmetic vs. logarithmic - why don't we seem to be concerned about that for risk calculations (in particular, for standard deviations); c should we? Are there any assumptions implicit in this regard? (Hint: think about the price process as Geometric Brownian motion, Ito's lemma, and the consequence on the volatility.)

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