Question 6 of 8
Which of the following is a measure of fluctuation in periodic returns in an equity mutual fund scheme?
A
Variance
B
Sharpe ratio
C
Modified duration
D
Jensen's Alpha
Correct Option:
A
Explanation
Variance measures the dispersion or fluctuation of periodic returns around their average return. A higher variance indicates greater volatility and, therefore, higher investment risk in the mutual fund's returns.
