The Variance of Returns Is Computed by Dividing the Sum

question 70

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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