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Definition of Variance - Finance dictionary

Variance (See Chapter 21 of the Vernimmen)

Variance is a statistical tool measuring the dispersion of a variable from its mean. Variance is equal to the sum of the squares of the deviation of each return from expected outcome, weighted by the likelihood of each of the possible returns occurring. Applied to financial profitability, variance measures the risk of a financial security.

Variance (See Chapter 21 of the Vernimmen)

Variance is a statistical tool measuring the dispersion of a variable from its mean. Variance is equal to the sum of the squares of the deviation of each return from expected outcome, weighted by the likelihood of each of the possible returns occurring. Applied to financial profitability, variance measures the risk of a financial security.

See all terms in the dictionary of finance

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To find other words in the dictionary of finance, click on the first letter of the word you are looking for:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Definitions of terms begining with the same letter as "Variance" :

VAR
VBI
VWAP
Value
Value added
Value and financial securities
Value at risk
Value creation
 Value drivers
Value of Business in Force
Value stock
Variable costs
Variance
Variance Swap
Vega
Venture capital
 Volatility
Volatility - bonds
Volatility - dividends
Volume growth
Volume-weighted average price
Vulture fund

Variance (See Chapter 21 of the Vernimmen)

Variance is a statistical tool measuring the dispersion of a variable from its mean. Variance is equal to the sum of the squares of the deviation of each return from expected outcome, weighted by the likelihood of each of the possible returns occurring. Applied to financial profitability, variance measures the risk of a financial security.

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