Question: Why do you square the deviations from the mean in one step of computing the standard deviation and then reverse it later by taking the
Why do you square the deviations from the mean in one step of computing the standard deviation and then reverse it later by taking the square root?
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This process eliminates negative signs to avoid matching negative surprises with positive surprises to mask volatility.
This process eliminates negative signs to avoid matching negative surprises with positive surprises to mask volatility.
This process allows you to practice using your calculator.
This process allows you to practice using your calculator.
This process is meant to confuse those who haven't taken finance.
This process is meant to confuse those who haven't taken finance.
This process standardizes the result to allow for comparisons across companies.
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