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.

---

Definitions:

Adjusted Cash Balance

A financial metric that reflects the amount of cash available after adjustments, often related to reconciling book and bank records.

Petty Cash Fund

A small amount of cash on hand used for minor or incidental expenses within a business.

Custodian

An individual or entity responsible for safeguarding assets, such as cash or securities, ensuring their safekeeping and proper use.

Journal Entry

A record in the accounting journal that represents a transaction and includes debits and credits.