The larger the variance, the more the actual returns tend to differ from the average return.

Name: The larger the variance, the more the actual returns tend to differ from the average return.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Variance measures the dispersion of a set of data points around their mean value. A larger variance indicates that the data points are more spread out, meaning the actual returns are more likely to differ from the average return.

The Larger the Variance, the More the Actual Returns Tend