The Standard Deviation of a Normal Distribution

question 32

Multiple Choice

The standard deviation of a normal distribution

• A)is always greater than zero
• B)is always 1
• C)can be any value
• D)cannot be negative

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Definitions:

S&P500 Value

A measurement of the stock performance of 500 large companies listed on stock exchanges in the United States.

Portfolio Value

The total market value of all the investments held by an individual or institution, including stocks, bonds, and other securities.

Covered Interest Arbitrage

A strategy involving the conversion of currency into another at current exchange rates, investment in foreign interest-bearing instruments, and the simultaneous hedging of exchange rate risk with a forward contract.

Currency Futures

Standardized contracts to buy or sell a specific currency at a future date and at a predetermined price on the foreign exchange market.