Question: Why are the deviations of returns squared when computing variance? This ensures that the sum of the deviations equals zero. This ensures that the sum
Why are the deviations of returns squared when computing variance?
This ensures that the sum of the deviations equals zero.
This ensures that the sum of the deviations is a positive number.
This ensures that variance is larger than expected return.
This ensures that the sum of the deviations is a negative number.
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