Answer:
A) 0.0618
Explanation:
Variance is given by:
[tex]V = \frac{\sum(Xi - \mu)^2}{n}[/tex]
Where 'Xi' is the value for each term 'i' in the sample of size 'n' and μ is the sample mean.
The mean investment return is:
[tex]\mu = \frac{0.28+0.21+0.01-0.36}{4} \\\mu = 0.035[/tex]
The variance is:
[tex]V = \frac{\sum(Xi - \mu)^2}{n}\\V = \frac{(0.28- 0.035)^2+(0.21- 0.035)^2+(0.01- 0.035)^2+(-0.36- 0.035)^2}{4}\\V= 0.0618[/tex]
The variance of the returns on this investment is A) 0.0618.
