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:

Rules At Work

Guidelines or principles established within a workplace to govern behavior and procedures.

Sensitivity

The quality of being responsive or susceptible to external conditions or stimuli.

Threatening Upward Comparison

It involves comparing oneself to others who are perceived to be better in some way, which can result in feelings of threat or inferiority.

Interpersonal Concern

The consideration and awareness of the feelings, needs, and well-being of others in social interactions or relationships.