To Eliminate the Bias in Calculating the Variance and Covariance

question 65

Multiple Choice

To eliminate the bias in calculating the variance and covariance of returns from historical data the average squared deviation must be multiplied by _________.

• A) n/(n - 1)
• B) n * (n - 1)
• C) (n - 1)/n
• D) (n - 1) * n