The risk of an asset can be measured by its variance, which is found by subtracting the worst outcome from the best outcome.

Name: The risk of an asset can be measured by its variance, which is found by subtracting the worst outcome from the best outcome.
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Quizplus · Accepted Answer

The variance is not simply the difference between the best and worst outcomes. It is a measure of how spread out or diverse the possible outcomes are, calculated by taking the average of the squared deviations from the expected value.

The Risk of an Asset Can Be Measured by Its