The Variance of a Discrete Distribution Increases If We Add

question 15

True/False

The variance of a discrete distribution increases if we add a positive constant to each one of its values.

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Definitions:

Limit-Sell Order

An order given to a broker to sell a specified quantity of a security at or above a specified price, ensuring the seller does not receive less than a predetermined price.

Program Trade

A set of stock transactions that involves the buying or selling of a large number of stocks simultaneously, often executed by computers to achieve specific investment objectives.

Coordinated Purchase

The act of buying securities or assets in a synchronized manner, often used to achieve a common financial goal or exert market influence.

Portfolio of Stocks

A collection of stocks held by an individual or an institution.