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The Range Validation Test Makes Sure That Data Are Reasonable

question 46

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The range validation test makes sure that data are reasonable for a situation.


Definitions:

Stocks

Shares of ownership in a company that entitle the shareholder to a proportion of the company's profits and assets.

T-bond Futures

Futures contracts that obligate the buyer to purchase Treasury bonds at a specified price at a future date.

Initial Margin

The minimum amount of funds required to be deposited in a margin account before trading on leverage to ensure that the account can cover potential losses.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account to cover potential losses.

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