Suppose a Portfolio Had an Arithmetic Average Return of 8

Multiple Choice

Suppose a portfolio had an arithmetic average return of 8 percent for a 4-year period.Which one of these statements must be true regarding this portfolio for the period?

A) At least one of the four years produced an annual rate of return of 8 percent.
B) If the standard deviation of the portfolio is greater than zero,then the geometric average portfolio return is less than 8 percent.
C) The standard deviation of the portfolio must be lower than the standard deviation of a comparable portfolio that had an arithmetic average return of 9 percent.
D) If the standard deviation of the portfolio is zero,then the geometric average return must also be zero.
E) The holding period return must be less than 8 percent.