What Is the Relationship Between the Variance and Standard Deviation

question 2

Multiple Choice

What is the relationship between the variance and standard deviation?

• A)The variance = standard deviation squared
• B)The standard deviation = the variance squared
• C)The variance = the standard deviation multiplied by the mean
• D)There is no straightforward relationship between the variance and standard deviation

---

Definitions:

Tax Shield

The reduction in income taxes that results from taking an allowable deduction from taxable income, such as the interest on debt.

Stand-Alone

Describes something that operates independently or can function without the need for external support.

Bottom-Up

An approach that starts at the most specific, detailed level and works up to a broader perspective, especially in planning and analysis.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and liquidity.