Mega Corporation has the following returns for the past three years: 8%,12%,and 10%.
Calculate the variance of the returns and the standard deviation of the returns.
A)64 and 8.0%
B)124 and 11.1%
C)4 and 2.0%
D)30 and 10.0%

Question

Quizplus · Accepted Answer

The mean return is 10%. The variance is calculated as the average of squared deviations from the mean: [(8-10)^2 + (12-10)^2 + (10-10)^2] / 3 = 4. The standard deviation is the square root of the variance, which is 2.0%.

Mega Corporation Has the Following Returns for the Past Three