What does the symbol Ri represent in the formula used to calculate standard deviation?
A) Mean return
B) Expected return for event i
C) Probability of event i occurring
D) Expected mean return

Question

Quizplus · Accepted Answer

Ri represents the expected return for event i, which is necessary to calculate the variance and standard deviation for a portfolio. The formula for standard deviation is the square root of the sum of (Ri - Rmean) squared multiplied by the probability of event i occurring. Therefore, Ri is an important factor in calculating standard deviation.

What Does the Symbol Ri Represent in the Formula Used