Question

The standard deviation is calculated as the weighted average of all the deviations of possible returns from the expected value, and indicates how far above or below the expected value the actual value is expected to be.

true or false

Answer 1

Solution :

The standard deviation is calculated as the weighted average of all the deviations of possible returns from the expected value, and indicates how far above or below the expected value the actual value is expected to be.

The formula for calculating the Standard Deviation is

The expected value is the average or mean of a group of observations.

N ($(x-u)2 *p(x)) 1/2 į = 1

where

Σ = summation of    ;    N = No. of observations ;   x = observed value or observation ;   µ = expected value   ;

P ( x ) = probability of the observed value or observation ;  

The statement is True,

The solution is Option 1 = True