Variance: Difference between revisions
WikiSysopIG (talk | contribs) Created page with "'''Variance''' is a statistical measure of the dispersion of observations around their mean. It measures the average squared deviation from the mean. In finance, variance is commonly used to measure the variability of investment returns and is an important component of volatility, portfolio risk, and portfolio theory. ::contentReference[oaicite:0]{index=0} ==Population variance== For a population of <math>N</..." |
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In finance, variance is commonly used to measure the variability of investment returns and is an important component of [[Volatility (finance)|volatility]], portfolio risk, and [[Modern portfolio theory|portfolio theory]]. | In finance, variance is commonly used to measure the variability of investment returns and is an important component of [[Volatility (finance)|volatility]], portfolio risk, and [[Modern portfolio theory|portfolio theory]]. | ||
==Population variance== | ==Population variance== | ||