Given the following information,what is the variance of the returns on this stock?
A)0.021387
B)0.021449
C)0.021506
D)0.021538
E)0.0215641

Name: Given the following information,what is the variance of the returns on this stock? A)0.021387 B)0.021449 C)0.021506 D)0.021538 E)0.0215641
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Question

Given the following information,what is the variance of the returns on this stock? 
A)0.021387 
B)0.021449 
C)0.021506 
D)0.021538 
E)0.0215641

Quizplus · Accepted Answer

Expected return = (0.18 × 0.29) + (0.77 × 0.14) + (0.05 × -0.45) = 0.1375Variance = 0.18(0.29 - 0.1375)² + 0.77(0.14 - 0.1375)² + 0.05(-0.45 - 0.1375)² = 0.021449

Given the Following Information,what Is the Variance of the Returns