The average squared difference between the actual return and the average return is called the
A)excess return.
B)variance.
C)standard deviation.
D)risk premium.
E)volatility return.

Question

Quizplus · Accepted Answer

The average squared difference between the actual return and the average return is known as variance, and it is a measure of the dispersion of returns. The other options are not correct, as excess return is the return above the risk-free rate, standard deviation is a measure of the total risk, risk premium is the additional return expected for taking on extra risk, and volatility return is not a commonly used term.

The Average Squared Difference Between the Actual Return and the Average