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Use the Range Rule of Thumb to Approximate the Standard

question 30

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Use the range rule of thumb to approximate the standard deviation. 15, 42, 63, 7, 9, 12, 14, 28, 47


Definitions:

Low-duration

Refers to investments that have a short time until maturity, typically associated with lower interest rate risk.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, expressed in years.

Today's Dollars

An amount of money adjusted for inflation to reflect current purchasing power, often used to compare money values at different times.

Investment

The allocation of resources, such as capital or time, in anticipation of generating income or profit.

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