Financial Risk Manager Part 1

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Which of the following correctly describes the bias of an estimator?

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A

The bias is typically calculated by taking the square of the deviation between two mean estimators.

B

The bias is greatest when the expected value of the estimator is equal to the true population value being estimated.

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C

The bias is equal to the expected value of the estimator divided by the population value being estimated.

D

The bias is the difference between the expected value of an estimator and the true value of the population parameter.

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