For the Following Distribution

question 31

Multiple Choice

For the following distribution,

-What is the variance of the distribution?

• A)1.1616
• B)0.964
• C)0.982
• D)1.000

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Definitions:

Nearest 0.01%

Rounding to the closest one-hundredth of a percent to simplify precision in calculations or representations.

Equivalent Interest

The interest amount that would be generated by applying a given interest rate, typically expressed as an annual rate.

Equivalent Interest

A term used in finance to describe an interest rate that may have been adjusted to reflect compounding over a different period than the one originally stated.

Equivalent Interest

An interest rate or yield that makes two financial instruments with different payment structures equally valuable.