What does X represent in the formula X = Σ (Ri - Ri )2 pi ? i=1
A) Standard deviation
B) Sum of the expected returns
C) Variance
D) Expected return

Question

Quizplus · Accepted Answer

X represents the variance in the formula. It is calculated as the weighted sum of the squared deviations of the expected returns from their mean. Therefore, the correct option is C, which represents the variance.

What Does X Represent in the Formula X = Σ