Answered
In calculating the variance of a portfolio's returns, squaring the deviations from the mean results in:
I. Preventing the sum of the deviations from always equaling zero
II. Exaggerating the effects of large positive and negative deviations
III. A number for which the unit is percentage of returns
A) I only
B) I and II only
C) I and III only
D) I, II, and III
On Sep 23, 2024