One common reason for reporting standard deviations rather than variances is that standard deviations:
A)Are lower
B)Are stated in understandable units
C)Account properly for negative returns
D)Take probability estimates into consideration

Question

Quizplus · Accepted Answer

Standard deviations are stated in the same units as the original data, which makes them more easily understandable than variances. Options A, C, and D are incorrect as they do not accurately describe the advantages of reporting standard deviations over variances.

One Common Reason for Reporting Standard Deviations Rather Than Variances