What Is the Variance of the Returns on a Security

question 48

Multiple Choice

What is the variance of the returns on a security given the following information?

• A)48.18
• B)56.23
• C)64.38
• D)72.87
• E)91.35

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Definitions:

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Units

Refers to a standard quantity or measurement used for comparison and calculation, such as in physics or mathematics.

Month

A unit of time, approximately 30 days, used as a standard measurement for billing cycles, budgeting, and financial forecasting.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor costs.