When Calculating the Variance of a Portfolio's Returns Squaring the Deviations

question 74

Multiple Choice

When calculating the variance of a portfolio's returns squaring the deviations from the mean results in ________.
I.preventing the sum of the deviations from always equaling zero
II.exaggerating the effects of large positive and negative deviations
III.a number in units of percentage of returns

• A) I only
• B) I and II only
• C) I and III only
• D) I, II and III

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Definitions:

Biopsychosocial Approach

An integrated approach that incorporates biological, psychological, and social-cultural levels of analysis in understanding health and illness.

Psychodynamic Perspective

An approach in psychology that emphasizes unconscious psychological processes and contends that childhood experiences are crucial in shaping adult personality.

Evolutionary Perspective

A theoretical approach in psychology that seeks to explain certain mental and psychological traits—such as memory, perception, or language—as adaptations, i.e., as the functional products of natural selection.

Neuroscience Perspective

An approach to understanding human behavior and mental processes through the study of the brain and nervous system.