An Investment Produced Annual Rates of Return of 5%, 12

question 22

Multiple Choice

An investment produced annual rates of return of 5%, 12%, 8% and 11%, respectively, over the past four years. What is the standard deviation of these returns?

• A) 3.2%.
• B) 2.7%.
• C) 3.6%.
• D) 3.8%.

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Definitions:

Dependent Variable

In an experiment, it is the variable that is being tested and measured, expected to change as a result of modifications to the independent variable.

Television Viewing

The act of watching content on a television set or through television channels.

Squares Total

The sum of squared differences between each observation and the overall mean of the data set. It is a measure of total variation within a data set.

Sum

The total obtained by adding together a set of numbers or quantities.