You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 2 percent,-12 percent,16 percent,22 percent,and 18 percent.What is the variance of these returns?

Question

Quizplus · Accepted Answer

Average = (0.02 - 0.12 + 0.16 + 0.22 + 0.18)/5 = 0.092Variance = [1/(5 - 1)] [(0.02 - 0.092)² + (-0.12 - 0.092)² + (0.16 - 0.092)² + (0.22 - 0.092)² + (0.18 - 0.092)²] = 0.01972

You've Observed the Following Returns on Crash-N-Burn Computer's Stock Over