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
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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) = (0.05 × 27) + (0.30 × 15) + (0.65 × -22) = -8.45 Var = 0.05[27 - (-8.45)]² + 0.30[15 - (-8.45)]² + 0.65[-22 - (-8.45)]² = 347.15

What Is the Variance of the Returns on a Security