Variance and the inequality of arithmetic and geometric means (Q527052)

In this paper, the author derived and proved in Theorem 1.2 that the bounds for the geometric mean solely depends on the arithmetic mean and the variance. In addition, it was shown that these mean-variance bounds are sharp. Applications of the derived results to finance was given and the author concludes that before an initial investment is made it is important that the investor should estimate the mean and variance of the returns for the asset from its historical performance records.