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An investment earned the following returns over a four-year period: 28 percent, 21 percent, 1 percent,...

An investment earned the following returns over a four-year period: 28 percent, 21 percent, 1 percent, and -36 percent. What is the variance of the returns on this investment?

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Answer #1

Hi,

Below is the excel formula and values for calculating the variance

Below are the values:

Hence variance is 6.18%

Thanks

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