What Is the Approximate Variance of Returns If Over the Past

question 58

Multiple Choice

What is the approximate variance of returns if over the past three years an investment returned 8.0 percent,-12.0 percent,and 15.0 percent?

• A) 0.31%
• B) 1.31%
• C) 1.82%
• D) 9.61%

---

Definitions:

Monetarists

Monetarists are economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods.

Supply Side

An economic theory that emphasizes the importance of increasing production and supply as a way to stimulate economic growth, often through tax cuts and deregulation.

Supply-side Arguments

Supply-side arguments focus on the belief that reducing taxes and regulations on businesses will stimulate economic growth by increasing supply, leading to job creation and income growth.

Tax Cuts

Reductions in the amount of taxes that individuals or corporations are required to pay.