What is the variance of the returns on a security given the following information?
A)239.77
B)284.05
C)321.16
D)347.15
E)362.98

Name: What is the variance of the returns on a security given the following information? A)239.77 B)284.05 C)321.16 D)347.15 E)362.98
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

What is the variance of the returns on a security given the following information? 
A)239.77 
B)284.05 
C)321.16 
D)347.15 
E)362.98

Quizplus · Accepted Answer

E(R) = (.05 × 27) + (.30 × 15) + (.65 × -22) = -8.45Var = .05[27 - (-8.45)]² + .30[15 - (-8.45)]² + .65[-22 - (-8.45)]² = 347.15

What Is the Variance of the Returns on a Security