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You are considering the purchase of a share. The following table shows the possible returns from the share over the next year, along with the probability of each return. What is the variance of the expected return from the share? Return Probability -5% 28% 1% 21% 8% 26% 12% 25% Expected Return 3.89%

You are considering the purchase of a share. The following table shows the possible returns from the share over the next year, along with the probability of each return. What is the variance of the expected return from the share? Return Probability -5% 28% 1% 21% 8% 26% 12% 25% Expected Return 3.89%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You are considering the purchase of a share. The following table shows the possible returns from the share over the next year, along with the probability of each return. What is the variance of the expected return from the share? Return Probability -5% 28% 1% 21% 8% 26% 12% 25% Expected Return 3.89% a. 0.004519 O b. 0.004472 c. 0.004499 O d. 0.004345
Transcribed Image Text:You are considering the purchase of a share. The following table shows the possible returns from the share over the next year, along with the probability of each return. What is the variance of the expected return from the share? Return Probability -5% 28% 1% 21% 8% 26% 12% 25% Expected Return 3.89% a. 0.004519 O b. 0.004472 c. 0.004499 O d. 0.004345
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