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Sagot :
The variance is the average of the squares difference between the real return and the average return. The answer is option (b). variance.
What is Variance?
Variance is the statistical evaluation of the numerical variation within a data set. Variance measures how far distant each number in the gathering is from the average (average) and, as a result, from one another.
Statisticians use variance to study how various numerical values interact to each other within a collection of data rather than more basic mathematical techniques like classifying numbers into quartiles. The advantage of variance is that it treats all deviations from the average equally in terms of their true directional nature. The data is considered to be absolutely unvariable since the sum of the squared difference can never equal zero.
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