. Chapter 12 Some Lessons from Capital Market History McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies,. ticker, press go and then click “Risk Measures” 12- 17 Insert Figure 12. 10 here Figure 12. 10 12- 18 Figure 12. 11 Insert figure 12. 11 here 12- 19 Arithmetic vs. Geometric Mean • Arithmetic. assets • Lessons from capital market history – There is a reward for bearing risk – The greater the potential reward, the greater the risk – This is called the risk-return trade-off 12- 4 Dollar