as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
describe the difference between the terms variance and standard deviation.
user
the difference between the terms variance and standard deviation is that variance measures the spread of data points around their mean while standard deviation measures the amount of variation or dispersion from the mean. variance is the average of the squared difference from the mean and is represented as a squared quantity, whereas standard deviation is the square root of variance and is represented as the same unit as that of the data.
assistant