The Average Squared Difference Between the Actual Return and the Average

question 37

Multiple Choice

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

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

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Definitions:

Ego

Part of Freud's psychoanalytic theory of personality, mediating between the demands of the id, the superego, and reality, and operating consciously and unconsciously to help the individual adapt.

Industrial Revolution

A period of major industrialization from the late 18th to early 19th century that transformed primarily agrarian, rural societies in Europe and America into industrialized, urban ones.

Superego

In psychoanalytic theory, the part of the personality that acts as the moral center, enforcing ethical conduct and societal norms.

Innately Good

Refers to the philosophical concept that humans are born with an innate sense of morality and goodness.