The Variance of Returns Is Computed by Dividing the Sum

question 15

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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Definitions:

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