The variance of an investment is found by multiplying each possible outcome by the probability that it will occur, then summing these values.

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Quizplus · Accepted Answer

This statement describes the expected value, not the variance. The variance of an investment is found by taking the difference between each possible outcome and the expected value, squaring these differences, multiplying by the probability of that outcome occurring, and summing these values.

The Variance of an Investment Is Found by Multiplying Each