What is the variance of returns of a 3-stock portfolio (each stock being equally weighted) that produced returns of 20%, 25%, and 30%?
A) 16.67
B) 33.33
C) 50.00
D)100.00

Name: What is the variance of returns of a 3-stock portfolio (each stock being equally weighted) that produced returns of 20%, 25%, and 30%? A) 16.67 B) 33.33 C) 50.00 D)100.00
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Question

Quizplus · Accepted Answer

Mean = (20% + 25 + 30)/3 = 25%Variance = {(20 - 25)² + (25 - 25)² + (30 - 25)²}/3 = 16.67

What Is the Variance of Returns of a 3-Stock Portfolio