Question

1. Lesly Cardona's investment in WellsFargo shares returned 3%, 4%, and 5% in years 1, 2, and 3 respectively. Based on this information, calculate the following:
   1. The standard deviation of wellsfargo stock
   2. Arithmatic mean return
   3. Geometric mean return

Answer 1

- calculating the Arithmatic mean return and Standard Deviation of wellsfargo stock:-

Year	Stock Return (R) (%)	[(R) - E(R)]	[(R) - E(R)]^2
1	3.00	-1.00	1.0000
2	4.00	0.00	0.0000
3	5.00	1.00	1.0000
	12.00		2.0000

- Arithmatic mean return, E(R)

Arithmatic mean return = 4%

- Standard Deviation

Standard Deviation = 0.8165%

- Geometric Average

Geometric Average

Geometric Average

Geometric Average = 3.9968%

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