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:

Profit Margin

A profitability ratio calculated as net income divided by revenue, showing the percentage of profit made from sales.

Income From Operations

The profit realized from a business's operational activities, calculated before taxes and interest are deducted.

Profit Margin

A financial metric that measures the percentage of revenue remaining after all expenses, taxes, and costs have been deducted.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.