What is the variance of returns if over the past three years an investment returned 8.0 percent, -12.0 percent, and 15.0 percent?

PLEASE SHOW WORK

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Expert Solution

Ans 196

YEAR	RETURN	(X -Average Return of X)^2
1	8	18.777778
2	-12	245.444444
3	15	128.444444
Total	11	392.666667


Average Return =	Total Return / NO of years
	11 / 3
	3.67

Variance =	sum of (X -Average Return of X)^2 / (no of years - 1)
	392.666667 / (3 - 1)
	196

jeff jeffy answered 3 years ago

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What is the variance of returns if over the past three years an investment returned 8.0 percent, -12.0 percent, and 15.0 percent?

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