Over the past five years,a stock returned 8.3 percent,-32.5 percent,-2.2 percent,46.9 percent,and 11.8 percent,respectively.What is the variance of these returns?

Question

Quizplus · Accepted Answer

Average return = (0.083 - 0.325 - 0.022 + 0.469 + 0.118)/5 = 0.0646σ² = [(0.083 - 0.0646)² + (-0.325 - 0.0646)² + (-0.022 - 0.0646)² + (0.469 - 0.0646)² + (0.118 - 0.0646)²]/(5 - 1) = 0.081504

Over the Past Five Years,a Stock Returned 8