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.

---

Definitions:

Formal Authority

indicates the legitimate power granted to an individual or organization by virtue of position or office to make decisions, command resources, or govern.

Force-Coercion Strategy

A change management approach that involves using power to effect change, typically through the application of pressure or the threat of negative consequences.

Formal Authority

Formal authority is the power or right, often vested by an organization, to give orders and make decisions within a designated scope.

Rewards Or Punishments

Mechanisms used to motivate individuals or groups, where rewards incentivize desired behaviors and punishments deter undesired ones.