Is variance a measure of risk?
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Studied at the University of Toronto, Lives in Toronto, Canada.
It is computed by finding the probability-weighted average of squared deviations from the expected value. Variance measures the variability from an average (volatility). Volatility is a measure of risk, so this statistic can help determine the risk an investor might take on when purchasing a specific security.
2023-06-21 12:09:31
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Lucas Harris
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It is computed by finding the probability-weighted average of squared deviations from the expected value. Variance measures the variability from an average (volatility). Volatility is a measure of risk, so this statistic can help determine the risk an investor might take on when purchasing a specific security.