The Variance of a Stock's Returns Can Be Calculated as The

question 74

Multiple Choice

The variance of a stock's returns can be calculated as the:

• A) average value of deviations from the mean.
• B) average value of squared deviations from the mean.
• C) square root of average value of deviations from the mean.
• D) sum of the deviations from the mean.

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Definitions:

Dependent Variable

The variable in an experiment or study that is expected to change in response to changes in another variable known as the independent variable.

Independent Variable

A variable in an experiment that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Least Squares Estimate

A statistical method used to minimize the sum of square differences between observed and estimated data points.

Dependent Variable

A variable in an experiment or model that is expected to change in response to changes in other variables.