One common reason for reporting standard deviations of percentage returns rather than variances is that standard deviations:
A) are lower.
B) are stated in understandable percentages.
C) account properly for negative returns.
D) take probability estimates into consideration.

Question

Quizplus · Accepted Answer

Standard deviations are often reported because they are in the same units as the data, making them easier to interpret, especially when dealing with percentage returns.

One Common Reason for Reporting Standard Deviations of Percentage Returns