Question: Where: R i = return in year i R = average return n = number of observations (years) LCID Returns: Returns: -18%, 44%, -22%, 22%,

Where: R i = return in year i R = average return n = number of observations (years) LCID Returns: Returns: -18%, 44%, -22%, 22%, 34% Average: 12% Compute squared deviations: (-18 - 12) = (-30) = 900 (44 - 12) = (32) = 1024 (-22 - 12) = (-34) = 1156 (22 - 12) = (10) = 100 (34 - 12) = (22) = 484 Sum of squared deviations = 900 + 1024 + 1156 + 100 + 484 = 3664

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