How Does Standard Deviation Differ from Semi-Variance

question 6

Multiple Choice

How does standard deviation differ from semi-variance?

• A)Standard deviation includes fluctuations that result in both gains and losses while semi-variance only measures fluctuations resulting in losses
• B)Standard deviation includes fluctuations that result in both gains and losses while semi-variance only measures fluctuations resulting in gains
• C)Semi-variance includes fluctuations that result in both gains and losses while standard deviation only measures fluctuations resulting in losses
• D)Semi-variance includes fluctuations that result in both gains and losses while standard deviation only measures fluctuations resulting in gains
• E)None of the above

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Definitions:

Purely Competitive

Refers to a market structure where many small firms sell identical products, entry and exit are easy, and no single seller can influence the market price.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing a measure of consumer benefit.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, typically viewed as a measure of producer welfare.