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4 May, 02:22

The variance of an investment's returns is a measure of the:

A. probability of a negative return.

B. historic return over long time periods.

C. average value of the investment.

D. volatility of the rates of return.

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Answers (1)
  1. 4 May, 02:31
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    B. historic return over long time periods.

    Explanation:

    Variance is a metric applied in statistics to determine the squared deviation of a random variable from its mean value.

    The variance of a return of investment is a measure of the historic return over large time periods. The historical return approach is more commonly used in the exercise of investing. It follows the data which is a finite set of historical returns of investment and assumes that each possible result has an equal probability.
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