Question

QUESTION 3 of 10: Stock returns vary from year to year. The more variance a stock displays the greater the potential risk. These

Answer 1

Answer:

The variance of these investment returns is 74

Step-by-step explanation:

Given:

Series =  10, 30, 15, 5, 20

To Find:

variance of a series = ?

Solution:

The variance of the series = $Var\left(X\right)=\sum _{i=1}^n\frac{\left(x_i-\bar{x}\right)^2}{n}$

$\bar{x} = \frac{10+30 +5+15 + 20}{5}$

$\bar{x} = \frac{80}{5}$

$\bar{x} =16$

Now $(x_i -\bar{x})^2 =$ $(10 -16)^2 + (30 -16)^2 + (5 -16)^2 +(15 -16)^2 +(20 -16)^2$

= $(-6)^2 + (14)^2 + (-11)^2 + (-1)^2+ (-4)^2$

= 36  + 196 +121 +  1+ 16

=  370

Now

$Var\left(X\right)=\frac{370}{5}$ =  74

Answer 2

Answer:

74

Step-by-step explanation: