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:

Investing Activities

Investing activities are financial transactions related to the acquisition or disposal of long-term assets and other investments not considered cash equivalents, as detailed in the statement of cash flows.

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of the company, as reported in the statement of cash flows.

Accounts Payable

A company's financial liability to its suppliers or creditors for received goods and services.

Accounts Receivable

Accounts Receivable are amounts owed to a business by its customers from sales or services provided on credit.