The Variance of Returns Is Computed by Dividing the Sum

question 274

Multiple Choice

The variance of returns is computed by dividing the sum of the:

• A) Squared deviations by the number of returns minus one.
• B) Average returns by the number of returns minus one.
• C) Average returns by the number of returns plus one.
• D) Squared deviations by the average rate of return.
• E) Squared deviations by the number of returns plus one.

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