The variance is defined as the:
A) Average difference between the average return and the actual return.
B) Square of the average return minus the square of the actual return.
C) Squared difference between the rates of return from one year to that of the following year.
D) Average squared difference between the actual return and the average return.
E) Average number of times an asset's rate of return falls within a specified range.

Question

Quizplus · Accepted Answer

Variance is calculated as the average of the squared differences from the Mean. It measures how far each number in the set is from the mean and thus from every other number in the set.

The Variance Is Defined as The