Asked by Dalanie Krogman on Apr 26, 2024
Verified
The mean is equal to the average variance of an investment over a period of time.
Average Variance
The mean of the squared deviations from the mean of a data set, indicating its volatility or variability.
Investment Period
The investment period is the duration over which an investment is held before it is sold or liquidated.
- Become familiar with the statistical parameters used in financial evaluations, like mean, variance, and standard deviation.
Verified Answer
TH
Tania HernandezApr 29, 2024
Final Answer :
False
Explanation :
The mean refers to the average value of a set of numbers, while the average variance of an investment over a period of time measures the variability or spread of its returns, not its average value.
Learning Objectives
- Become familiar with the statistical parameters used in financial evaluations, like mean, variance, and standard deviation.
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