Semivariance,when applied to portfolio theory,is concerned with
A) The square root of deviations from the mean.
B) All deviations below the mean.
C) All deviations above the mean.
D) All deviations.
E) The summation of the squared deviations from the mean.

Question

Quizplus · Accepted Answer

Semivariance, when applied to portfolio theory, is concerned with all deviations below the mean. It measures the dispersion of the returns associated with the unfavorable outcomes of an investment. It is used to calculate the downside risk of investments in a portfolio, especially when an investor is looking to avoid losses.

Semivariance,when Applied to Portfolio Theory,is Concerned with