Variance Is a Measure of the Variability of Returns,and Since

question 106

True/False

Variance is a measure of the variability of returns,and since it involves squaring the deviation of each actual return from the expected return,it is always larger than its square root,the standard deviation.

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Definitions:

Unamortized Discount

The portion of a bond discount that has not yet been amortized (gradually written off) over the period of the bond's life.

Redeemed

The process of exchanging a financial instrument, such as a bond or coupon, for its cash value.

Carrying Amount

The book value of an asset or liability on the balance sheet, calculated by deducting any accumulated depreciation or amortization from the asset's initial cost.

Bonds Payable

Liabilities representing amounts owed by a company to bondholders, to be paid at a specified maturity date.