What Is the Variance of the Expected Returns on This

question 78

Multiple Choice

What is the variance of the expected returns on this stock?

• A)1.21
• B)1.42
• C)1.56
• D)3.84
• E)4.03

---

Definitions:

Utility Function

A mathematical representation of how consumer preferences over bundles of goods or services translate into levels of satisfaction or utility.

Leisure

Time free from the demands of work or duty, where individuals may choose to engage in activities for relaxation, enjoyment, or other personal satisfaction.

Consumption

The use of goods and services by households, referring to the action and effect of consuming products.

Nonlabor Income

Income received from sources other than employment, such as investments, pensions, or inheritance, which influences consumer behavior and economic decisions.