The larger the variance, the larger the standard deviation.

Variance

A statistical measure of the dispersion of data points in a data set around the mean, indicating the volatility and risk associated with a particular asset or investment.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean of the data set.

Understand the statistical metrics applied in financial analysis, including average, variability, and standard deviation.

Verified Answer

Tatum BrannanMay 19, 2024

Final Answer :

True

Explanation :

Standard deviation is the square root of variance, so as variance increases, standard deviation also increases.

Learning Objectives

Understand the statistical metrics applied in financial analysis, including average, variability, and standard deviation.

The larger the variance, the larger the standard deviation.

Definitions

Learning Objectives

Learning Objectives

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