Which of the Following Is the Best Definition for the Concept

question 273

Multiple Choice

Which of the following is the best definition for the concept of standard deviation?

• A) The return earned in an average year over a multi-year period.
• B) The hypothesis is that actual capital markets are efficient.
• C) The average squared deviation between the actual return and the average return.
• D) Statistical measure of maximum loss used by banks and other financial institutions to manage risk exposures.
• E) The positive square root of the variance.

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Definitions:

Optimal Level

The most favorable or desirable degree of efficiency, concentration, or condition for a particular process or function.

Stimulation

The action of arousing interest, excitement, or activity in someone or something, or the condition of being stimulated.

Expectancy

A belief or anticipation regarding the likelihood that a specific outcome will occur as a result of certain actions or behaviors.

Homeostasis

The process by which a living organism or cell maintains a stable internal environment despite changes in external conditions.