Variance Is a Measure of the Variability of Returns, and Since

question 91

True/False

Variance is a measure of the variability of returns, and since it involves squaring the deviation of each actual return from the expected return, it is always larger than its square root, its standard deviation.

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Definitions:

Marginal Benefit

Refers to the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Marginal Benefit

The additional satisfaction or utility gained by consuming one more unit of a good or service, important for decision-making in consumption and production.

Marginal Benefit

The extra pleasure or benefit gained by an individual from consuming one more unit of a product or service.

Profit-Maximizing Principle

The economic principle that firms operate to achieve the highest possible profit from their operations, by adjusting output levels, pricing, or resource usage.