Use the table for the question(s)below.
Consider the following realized annual returns:
-The variance of the returns on the Index from 2000 to 2009 is closest to:
A).0450.
B).3400.
C).1935.
D).0375.

Question

Use the table for the question(s)below.
Consider the following realized annual returns: 
-The variance of the returns on the Index from 2000 to 2009 is closest to:
A).0450. 
B).3400. 
C).1935. 
D).0375.

Quizplus · Accepted Answer

The variance is a measure of the dispersion of returns. Given the options, .0375 is the closest reasonable estimate for the variance of returns over a decade, as it is a typical value for financial return variances.

Use the Table for the Question(s)below