93. Calculate the variance of an investment with five year returns of 10%, 6%, 4%, 2% and (10%).
where N = no. of returns
Mean of Returns = ( 10 + 6 + 4 + 2  10 ) / 5 = 2.4 %

Sum of All ( Return  Mean) ^{2} = 57.76 + 12.96 + 2.56 + 0.16 + 153.76 = 227.2
Sum of All ( Return  Mean) ^{2} / N = 227.2 / 5 = 45.44
Square Root of [ Sum of All ( Return  Mean) ^{2} / N ] = ( 45.44 ) ^{1/2} = 6.74 %
Get Answers For Free
Most questions answered within 1 hours.