How does standard deviation differ from semi-variance?
A)Standard deviation includes fluctuations that result in both gains and losses while semi-variance only measures fluctuations resulting in losses
B)Standard deviation includes fluctuations that result in both gains and losses while semi-variance only measures fluctuations resulting in gains
C)Semi-variance includes fluctuations that result in both gains and losses while standard deviation only measures fluctuations resulting in losses
D)Semi-variance includes fluctuations that result in both gains and losses while standard deviation only measures fluctuations resulting in gains
E)None of the above

Question

Quizplus · Accepted Answer

Standard deviation measures the variability or dispersion of a set of data, taking both gains and losses into account. Semi-variance, on the other hand, only measures variability that results in losses, and ignores variability that results in gains. Therefore, choice A is the correct answer.

How Does Standard Deviation Differ from Semi-Variance