The Variance Is the Same as the

question 27

Multiple Choice

The variance is the same as the

• A)average of the squared deviations.
• B)sum of the squared deviations.
• C)average of the absolute deviations.
• D)sum of the absolute deviations.

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Definitions:

Risk-Free Rate

The Risk-Free Rate is the return on an investment with no risk of financial loss, typically associated with government bonds.

Systematic Risk

The exposure to uncertainty within the entire market or a segment of the market that remains despite the diversification of assets.

Portfolio

A collection of investments, such as stocks, bonds, and other financial assets, held by an individual or institution.

Funds

Financial assets or resources saved or made available for a specific purpose or investment.