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,the standard deviation.

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Quizplus · Accepted Answer

This statement is true. Variance involves squaring the deviation of each actual return from the expected return, which results in larger values than the square root of the variance, which is the standard deviation.

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