单选题 A security has a 30% chance of producing a 15% return and a 70% chance of producing a 4% return. The variance of the security is closest to:
【正确答案】 C
【答案解析】
The variance is the sum of the probability times the difference between the return and the expected return squared. First, find the expected return as: (0.30)(0.15)+(0.70)(-0.04)= 0.017, or 1.7%. Then, the variance is determined as: (0.30)(0.15-0.017)2+(0.70)(-0.04-0.017)2=0.0077.