The Shape of a Distribution with a Large Standard Deviation

question 35

Multiple Choice

The shape of a distribution with a large standard deviation would look

• A)wide because the distribution covers a large range of scores.
• B)wide because the distribution covers a narrow range of scores.
• C)tall and peaked to the left of the mean.
• D)tall and peaked to the right of the mean.

---

Definitions:

Short-Term Price Movements

Fluctuations in the price of securities that occur within a brief period, often influenced by market sentiment and news.

Swap Contract

An agreement between two parties to exchange sequences of cash flows over a set period of time, generally used to exchange different types of interest rates or currencies.

Specified Cash Flows

Designated or particular cash movements into or out of a business or investment over a defined period.

Payoff Profile

A graphical representation that shows the potential profit or loss of an investment or strategy at various price levels.