Which of the Following Is the Best Definition for the Concept

question 44

Multiple Choice

Which of the following is the best definition for the concept of standard deviation?

• A) The return earned in an average year over a multi-year period.
• B) The hypothesis is that actual capital markets are efficient.
• C) The average squared deviation between the actual return and the average return.
• D) Statistical measure of maximum loss used by banks and other financial institutions to manage risk exposures.
• E) The positive square root of the variance.

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Definitions:

Curvilinear

Describes a graph or relationship that displays a curve, illustrating that changes between two variables are not constant but vary at different rates.

Fixed Cost

A cost that does not change with the level of production or sales, remaining constant regardless of activity.

Fixed Production Costs

Expenses that do not fluctuate with the level of production output, such as depreciation on factory buildings and salaries of certain managers.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.