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Florida Company (FC) and Minnesota Company (MC) Are Both Service

Question 42

Multiple Choice

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: -5%, 15%, 20%; MC: 8%, 8%, 20%. Calculate the variances of return for FC and MC.


A) FC: 100 MC: 256
B) FC: 350 MC: 96
C) FC: 175 MC: 48
D) None of the above

Correct Answer:

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