Respuesta :
We calculate the correct answer of this question by subtracting the risk-free rate from portfolio return and then dividing this value by the excess return of the portfolio's standard deviation.
Standard deviation is a fundamental mathematical thought that measures volatility in the market or the common amount by way of which man or woman statistics points differ from the mean.
Simply put, preferred deviation helps determine the unfold of asset costs from their common price.
What does standard deviation mean in marketing?
Description. Standard deviation is the statistical measure of market volatility, measuring how extensively fees are dispersed from the average price. If costs exchange in a narrow buying and selling range, the popular deviation will return a low value that shows low volatility.
What is trendy deviation in easy way?
The standard deviation is the average amount of variability in your dataset. It tells you, on average, how a ways each price lies from the mean. A excessive standard deviation skill that values are generally a ways from the mean, whilst a low wellknown deviation indicates that values are clustered shut to the mean.
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