Calculate the Variance of Returns for Alpha Stock with the Following

question 78

Multiple Choice

Calculate the variance of returns for Alpha stock with the following historical rates of return: 2013 20%
2014 25%
2015 30%

• A) 16.67
• B) 33.33
• C) 50.00
• D) 100.00

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Definitions:

Incentive

A factor, either monetary or non-monetary, that motivates or encourages an individual or group to perform certain actions or behave in a specific way.

Trade

The exchange of goods and services between different parties, often involving the transfer of money and can occur within or across borders.

Market Failure

Refers to a situation where the allocation of goods and services by a free market is not efficient, often justifying government intervention.

Market Prices

The price point at this moment for the sale or purchase of a service or asset.