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Florida Company (FC)and Minnesota Company (MC)are Both Service Companies

Question 34

Multiple Choice

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


A) FC: 100 MC: 256
B) FC: 350 MC: 96
C) FC: 175 MC: 48
D) FC: 48 MC: 175

Correct Answer:

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