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:

Scope

The extent or range of view, outlook, application, operation, or effectiveness of an object, project, or proposal.

Scope

The extent of the area or subject matter that something deals with or to which it is relevant.

Proposal

A formal suggestion or plan, often in writing, put forward for consideration or discussion by others.

Boundaries

Limits that define the scope of something, such as personal space, professional roles, or geographical borders.