You have a sample of returns observations for the Malta Stock Fund. The 4 returns are 7.25%,5.6%,12.5%,1.0%. What is the average return and variance of these returns?
A) 6.50%; 16.9
B) 6.60%; 22.5
C) 6.60%; 4.75
D) 26.35%; 67.6
E) None of these.

Question

Quizplus · Accepted Answer

The average return is calculated as (7.25% + 5.6% + 12.5% + 1.0%) / 4 = 6.60%. The variance is calculated by finding the average of the squared deviations from the mean, which results in 22.5.

You Have a Sample of Returns Observations for the Malta