Over the past five years,Southwest Railway stock had annual returns of 10,14,-6,7.5,and 16 percent,respectively.What is the variance of these returns?
A).00548
B).00685
C).00770
D).01370
E).02740

Question

Quizplus · Accepted Answer

Mean = (.10 + .14 - .06 + .075 + .16)/5 = .0830Var = [(.10 - .083)² + (.14 -.083)² + (-.06 - .083)² + (.075 - .083)² + (.16 - .083)²]/(5 - 1) = .0077

Over the Past Five Years,Southwest Railway Stock Had Annual Returns