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The expected squared deviation of a random variable from its mean; or, the average squared deviation of data about their mean.

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Semivariance: Are these two formulas equivalent?

Mean Semivariance optimization defines semivariance, variance only below the benchmark/required rate of return, as: $$\frac 1 T \sum_{t=1}^T [\min(R_{it}-B,0)]^2$$ where $B$ is the benchmark rate, $R_i …