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 referred to as variance. Variance measures the dispersion of returns from their average, thus indicating the volatility or risk of an investment.

The Average Squared Difference Between the Actual Return and the Average