The Higher the Standard Deviation, the Less Certain the Rate

question 132

True/False

The higher the standard deviation, the less certain the rate of return in any one given year.

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Definitions:

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds over a period of time.

Net Income

The earnings left for a company after paying off all its costs and tax obligations from its revenue.

Times Interest Earned Ratio

A financial metric used to determine a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, reported on the income statement.