When Calculating the Variance of a Portfolio's Returns Squaring the Deviations

question 74

Multiple Choice

When calculating the variance of a portfolio's returns squaring the deviations from the mean results in ________.
I.preventing the sum of the deviations from always equaling zero
II.exaggerating the effects of large positive and negative deviations
III.a number in units of percentage of returns

• A) I only
• B) I and II only
• C) I and III only
• D) I, II and III

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Definitions:

Demographic Data

Statistical data relating to the population and particular groups within it, often used for research, marketing, and policy-making.

Cultural Expectations

The shared beliefs or norms that a group holds about how individuals should behave in various contexts.

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