Question

The variance of a stock's returns can be calculated as the:

Answer 1

Answer:

The correct option is b.

Step-by-step explanation:

The formula for standard deviation is

$\sigma^2=\frac{\sum {(x-\overline{x})^2}}{n}$

where, $\overline{x}$ is mean of the data and n is number of observation.

The variance of a stock's returns can be calculated by the above formula.

Variance of stock's returns is the average value of squared deviations from the mean.

Therefore the correct option is b.