Use the Table for the Question(s)below

question 36

Multiple Choice

Use the table for the question(s) below.
Consider the following realized annual returns:
-The variance of the returns on the Index from 2000 to 2009 is closest to:

• A).0450.
• B).3400.
• C).1935.
• D).0375.

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Definitions:

Law of One Price

The economic theory that states that in efficient markets, identical goods should have only one price.

Price Ceiling

A legal maximum on the price at which a good can be sold.

Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another currency.

Net Exports

The difference between a nation's total exports and its total imports.