The standard deviation for a set of equity returns can be calculated as the:
A)positive square root of the average return.
B)average squared difference between the actual return and the average return.
C)positive square root of the variance.
D)average return divided by N minus one, where N is the number of returns.
E)variance squared.

Question

Quizplus · Accepted Answer

The standard deviation is defined as the square root of the variance. Therefore, option C - positive square root of the variance - is the correct choice. The other options are not accurate definitions of the standard deviation.

The Standard Deviation for a Set of Equity Returns Can