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Find the Variance for a Security That Has Three One-Year

question 85

Multiple Choice

Find the variance for a security that has three one-year returns of -5%,15%,and 20%.


Definitions:

Z-statistic

A statistic used to determine the difference between an observed statistic and its hypothesized population parameter, measured in units of the standard deviation.

Two-tailed Test

A statistical test hypothesis that allows for the possibility of an effect in two directions, either greater than or less than.

Significant

In statistics, indicating that the results of an analysis are unlikely to have occurred purely by chance, at a specified level of probability.

Z-test

A method of statistical analysis that evaluates whether there is a significant difference between the means of two populations, given known variances and a large sample size.

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