Question

Over the past five years, a stock returned 5.31 percent, 0.81 percent, 29.59 percent, 3.63 percent,...

Over the past five years, a stock returned 5.31 percent, 0.81 percent, 29.59 percent, 3.63 percent, and 16.15 percent, respectively. What is the variance (as a decimal fraction) of these returns?

Carry intermediate calculations to six decimals. Answer to four decimals. Your answer should look something like 0.0123, or 0.0024

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Answer #1

Variance = 0.0562592

Year Return (X) X-Mean (X-Mean)^2
1 0.0531 -0.05788 0.0033501
2 0.0081 -0.10288 0.0105843
3 0.2959 0.18492 0.0341954
4 0.0363 -0.07468 0.0055771
5 0.1615 0.05052 0.0025523
Mean (Average of Return (X) 0.11098 Variance (Total of (X-Mean)^2) 0.0562592

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