The Average Squared Difference Between the Actual Return and the Average

question 10

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:

Financial Account

A component of a country's balance of payments that records transactions involving domestic and foreign financial assets and liabilities.

Remittances

Money transferred by foreign workers to individuals in their home country, contributing to the economy through support of family and investment in local businesses.

Workers

Individuals engaged in any form of employment, contributing labor to produce goods or services.

Net Transfers

The balance of financial transactions from grants, remittances, or aid between entities or countries, excluding commercial transactions.