an ivestment un otbwiny whelishe variance ot retun hi inveri
an ivestment un otbwiny whelishe variance ot retun hi inveri men t? b) 0-15% )o. 89 J) o. 0835 e) o. 1844
Solution
ANswer is .0839
Example For Calculation 1 =(-30%-8%)^2=.1444
Average return=32%/4=8%
Variance =.2518/(4-1) =.0839
| N | Return | (Return-8%)^2 |
| 1 | -30.00% | 0.1444 |
| 2 | 40.00% | 0.1024 |
| 3 | 15.00% | 0.0049 |
| 4 | 7.00% | 0.00 |
| Total | 32.00% | 0.2518 |
