The standard deviation for a set of stock returns can be calculated as the:
A)positive square root of the variance.
B)variance squared.
C)positive square root of the average return.
D)average return divided by N minus one, where N is the number of returns.
E)average squared difference between the actual return and the average return.

Question

Quizplus · Accepted Answer

The standard deviation is the positive square root of the variance. This represents the average distance of all returns from the average return (mean) of the set, and is expressed in the same units as the returns themselves.

The Standard Deviation for a Set of Stock Returns Can