Q 8# Which of the following equations is INCORRECT?
A)Var(R)=
B)SD(R)=
C)Var(R)=

# Which of the following equations is INCORRECT?
A)Var(R)=
B)SD(R)=
C)Var(R)= ^{Σ}^{R PR} × (R - E[R])2
D)E[R] = ^{Σ}^{R PR} × R

Multiple Choice

Related questions

Q 7

Which of the following statements is FALSE?
A)The standard deviation is the square root of the variance.
B)Because investors dislike only negative resolutions of uncertainty,alternative measures that focus solely on downside risk have been developed,such as the semi-variance and the expected tail loss.
C)While the variance and the standard deviation are the most common measures of risk,they do not differentiate between upside and downside risk.
D)While the variance and the standard deviation both measure the variability of the returns,the variance is easier to interpret because it is in the same units as the returns themselves.

Q 9

Use the table for the question(s)below.
Consider the following probability distribution of returns for Alpha Corporation:
-The expected return for Alpha Corporation is closest to:
A)6.67%.
B)5.00%.
C)10%.
D)0.00%.

Q 10

Use the table for the question(s)below.
Consider the following probability distribution of returns for Alpha Corporation:
-The variance of the return on Alpha Corporation is closest to:
A)5.00%.
B)4.75%.
C)3.625%.
D)3.75%.