Calculate the Variance of an Investment with fiVe Year Returns

question 74

Multiple Choice

Calculate the variance of an investment with five year returns of 15%, 10%, 5%, (5%) and (10%) .

• A) 1.03%
• B) 1.08%
• C) 1.13%
• D) 1.18%
• E) 1.23%

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Definitions:

Prisoners' Dilemma

A scenario in game theory where two individuals acting in their own best interest do not produce the optimal outcome for the group.

Cournot Output Choice

A model in economic theory where firms choose their output levels assuming competitors' outputs are fixed, aiming to maximize their own profit.

Pure Strategy Equilibrium

A concept in game theory where each player's chosen strategy provides the best outcome, given the strategies chosen by other players.

Nash Equilibrium

A situation in a strategic game where each player has chosen a strategy and no player can benefit by changing strategies while the other players keep theirs unchanged.