Averaging the Deviations from the Mean for a Portfolio of Securities

question 49

Multiple Choice

Averaging the deviations from the mean for a portfolio of securities will:

• A) compute the standard deviation.
• B) compute the variance.
• C) equal zero.
• D) equal the number of securities in the portfolio.

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Definitions:

Smooth Muscle

Involuntary, non-striated muscle found in the walls of internal organs and blood vessels, controlled by the autonomic nervous system.

Arteries

Blood vessels that carry oxygenated blood away from the heart to the body's tissues.

Arteriosclerosis

The thickening, hardening, and loss of elasticity of the walls of arteries, often leading to restricted blood flow.

Tunica Intima

The innermost layer of a blood vessel, composed of a thin layer of endothelial cells that lines the interior surface.