The Variance Of $\bar { Y } , \sigma _ { \bar { Y } } ^ { 2 }$

question 41

Multiple Choice

The variance of $\bar { Y } , \sigma _ { \bar { Y } } ^ { 2 }$ is given by the following formula:

• A) \(\sigma _ { Y } ^ { 2 }\)
• B) \(\frac { \sigma _ { Y } } { \sqrt { n } }\)
• C) \(\frac { \sigma _ { Y } ^ { 2 } } { n }\)
• D) \(\frac { \sigma _ { Y } ^ { 2 } } { \sqrt { n } }\)

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Definitions:

IRR Method

The Internal Rate of Return method, a capital budgeting technique that calculates the rate of return at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Nonconventional Flows

Atypical or irregular cash flows in an investment, complicating the assessment of an investment's value or project's profitability.

Profitability Index

A calculation that measures the relative profitability of an investment, by dividing the present value of future cash flows by the initial investment cost.

Share Price

The current price at which a single share of a company's stock can be bought or sold in the financial markets.