A Problem with the Variance as a Measure of Risk

question 74

Multiple Choice

A problem with the variance as a measure of risk is that by squaring the individual deviations from the mean, you end up with a measure that is in squared units.To get back to the original units of measurement we commonly take the square root and obtain a risk measure known as:

• A)the confidence interval.
• B)standard deviation.
• C)co-efficient of variation.
• D)kurtosis.
• E)the root mean square.

Understand the functionality and importance of the myelin sheath on axons.

Comprehend the influence of peer and parental relationships during adolescence.

Identify factors that influence age-related declines in cognitive abilities and strategies that may mitigate these declines.

Understand the development and decline of various cognitive abilities across the lifespan, including perceptual speed and memory types.

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Definitions:

Annual Salary

The amount of money a person earns from their job in a year.

Contractual Obligation

A legal duty established by a contract between parties, enforceable by law.

Raw Materials Inventory

The stock of materials and components that a company holds for the future production of goods.

Present Analysis

The evaluation of current financial metrics and economic conditions to make decisions or forecasts about future performance.