
Explanation:
Step 1: Convert percentages to decimals Returns: 0.21, 0.17, 0.11, 0.18, 0.15
Step 2: Calculate sample mean
Step 3: Calculate sum of squared deviations
Step 4: Calculate unbiased sample variance
Therefore, the correct unbiased sample variance is 0.00138.
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The CIO of a global macro fund is assessing the performance of the international portfolio managers of the fund. The annualized total returns of a sample of the managers are 21%, 17%, 11%, 18%, 15%. What is the correct unbiased sample variance of the returns data?
A
0.00128
B
0.00138
C
0.00148
D
0.00158
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