The Geometric Mean Return on Large-Company Stocks for the 1926-2009

Multiple Choice

The geometric mean return on large-company stocks for the 1926-2009 period:

A) is approximately equal to the arithmetic mean return plus one-half of the standard deviation.
B) exceeds the arithmetic mean return.
C) is approximately equal to the arithmetic mean return minus one-half of the standard deviation.
D) is approximately equal to the arithmetic mean return plus one-half of the variance.
E) is less than the arithmetic mean return.