Given the following information,what is the variance of the returns on this stock?
A)0.002453
B)0.002663
C)0.002691
D)0.002759
E)0.002914

Name: Given the following information,what is the variance of the returns on this stock? A)0.002453 B)0.002663 C)0.002691 D)0.002759 E)0.002914
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Given the following information,what is the variance of the returns on this stock? 
A)0.002453 
B)0.002663 
C)0.002691 
D)0.002759 
E)0.002914

Quizplus · Accepted Answer

Expected return = (0.30 × 0.18) + (0.65 × 0.11) + (0.05 × -0.06) = 0.1225Variance = 0.30(0.18 - 0.1225)² + 0.65(0.11 - 0.1225)² + 0.05(-0.06 - 0.1225)² = 0.002759

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