Given the Following Historical Returns, What Is the Variance? Year

question 93

Multiple Choice

Given the following historical returns, what is the variance? Year 1 = 8%; year 2 = -12%; year 3 = 6%; year 4 = 1%; year 5 = -19%.

• A) 0.0063
• B) 0.0089
• C) 0.0139
• D) 0.0394
• E) 0.1178

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Definitions:

Racemization

A process leading to the conversion of an optically active compound into a racemic mixture, where there is an equal proportion of left and right-handed enantiomers.

Substitution

A chemical reaction in which an atom or group of atoms in a molecule is replaced by another atom or group.

Methanol/Water

A mixture of methanol and water, often used as a solvent or reactant in various chemical reactions.

Phenyl-Ethylamine

A natural monoamine alkaloid often associated with mood elevation and love due to its presence in chocolate.