The average squared difference between the actual return and the average return is called the:
A)excess return.
B)risk premium.
C)standard deviation.
D)variance.
E)volatility return

Question

Quizplus · Accepted Answer

The average squared difference between the actual return and the average return is called the variance. It is a measure of how volatile the returns are and is commonly used to calculate risk in investment portfolios.

The Average Squared Difference Between the Actual Return and the Average