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Variance Is a Measure of the Variability of Returns, and Since

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Variance is a measure of the variability of returns, and since it involves squaring the deviation of each actual return from the expected return, it is always larger than its square root, its standard deviation.


Definitions:

Transformation

A broad term indicating change, in chemistry often referring to the conversion of a compound into another by chemical reaction.

Structure

The arrangement of atoms or molecules in a compound, defining its chemical properties and behavior.

Product

The result of a process or chemical reaction, typically described in the context of what is synthesized or created.

Reaction

A process in which chemical substances interact, leading to the reorganization of their atomic or molecular structure.

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