Averaging the deviations from the mean for a portfolio of securities will:
A)Compute the standard deviation
B)Compute the variance
C)Equal zero
D)Equal the number of securities in the portfolio

Name: Averaging the deviations from the mean for a portfolio of securities will: A)Compute the standard deviation B)Compute the variance C)Equal zero D)Equal the number of securities in the portfolio
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Question

Quizplus · Accepted Answer

The sum of deviations from the mean for any data set, including a portfolio of securities, is always zero.

Averaging the Deviations from the Mean for a Portfolio of Securities