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You find a certain stock that had returns of 14 percent, -27 percent, 19 percent, and 21 percent for four of the last five years,
- You find a certain stock that had returns of 14 percent, -27 percent, 19 percent, and 21 percent for four of the last five years, respectively. (12 points)
- What is the average return of the stock over this period?
- Compute the arithmetic average.
- Compute the geometric average.
- What is the standard deviation of the stock's returns?
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