This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Find the variance for a security that has three one-year returns of -5, 15, and 20. A) 175.00 B) ... (Read 55 times)

wenmo

  • Hero Member
  • *****
  • Posts: 540
on: Jul 10, 2018
Find the variance for a security that has three one-year returns of -5, 15, and 20.
 
  A) 175.00
  B) 75.00
  C) 58.33
  D) 25.00

Question 2

Find the variance for a security that has three one-year returns of 5, 10, and 15.
 
  A) 10.00
  B) 16.67
  C) 25.00
  D) 30.00


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dlook33

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: A
Explanation: A) Average return = rt/n = (-5 + 15 + 20)/3 = 10
Variance(r) =  (ri - average)2 / (n - 1)
= (-5 - 10)2 + (15 - 10)2 + (20 - 10)2/(3 - 1) = 175.

Answer to Question 2

Answer: C
Explanation: C) Average return = rt/n = (5 + 10 + 15)/3 = 10
Variance(r) =  (ri - average)2 / (n - 1)
= (5 - 10)2 + (10 - 10)2 + (15 - 10)2/(3 - 1) = 25


wenmo

  • Member
  • Posts: 540
Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

irishcancer18

  • Member
  • Posts: 310
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Effects of Therapy for Stuttering A functional MRI scan shows regions of the superior temporal lobe Effects of Therapy for Stuttering A functional MRI scan shows regions of the superior temporal lobe
How to use the squeeze theorem to find the limit of a function How to use the squeeze theorem to find the limit of a function
How to use a tree diagram to find the probability How to use a tree diagram to find the probability
People in poor, urban areas often find themselves in “food deserts" People in poor, urban areas often find themselves in “food deserts"
A peice of paper has a perimeter of 100 cm and an area of 616cm^2. Find the dimensions A peice of paper has a perimeter of 100 cm and an area of 616cm^2. Find the dimensions
What single payment one year from now would be economically equivalent to payments of $1,000 ... What single payment one year from now would be economically equivalent to payments of $1,000 ...
Video: How antibiotics works? 💊

For a complete list of videos, visit our video library