The Average Squared Difference Between the Actual Return and the Average

question 28

Multiple Choice

The average squared difference between the actual return and the average return is called the

• A)excess return.
• B)variance.
• C)standard deviation.
• D)risk premium.
• E)volatility return.

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Definitions:

Leveraged Lease

A financing arrangement where a lessor uses borrowed funds to purchase an asset that is then leased to a third party.

Tax-Oriented

Refers to financial strategies or decisions that are primarily influenced by tax considerations.

NPV

Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.