Five years ago,you purchased 600 shares of stock.The annual returns have been 7.2 percent,-19.4 percent,3.8 percent,14.2 percent,and 27.9 percent,respectively.What is the variance of these returns?

Question

Quizplus · Accepted Answer

Average return = (0.226 + 0.187 + 0.113 - 0.198 + 0.024)/5 = 0.0704σ² = [(0.226 - 0.0704)² + (0.187 - 0.0704)² + (0.113 - 0.0704)² + (-0.198 - 0.0704)² + (0.024 - 0.0704)²]/(5 - 1) = 0.028453

Five Years Ago,you Purchased 600 Shares of Stock