The Standard Deviation Is Generally More Useful Than the Variance

question 96

Multiple Choice

The standard deviation is generally more useful than the variance because:

• A) it is easier to calculate.
• B) variance is a measure of risk, where standard deviation is a measure of return.
• C) standard deviation is calculated in the same units as payoffs and variance isn't.
• D) it can measure unquantifiable risk.

Understand the fundamental principles of quantitative research and data analysis.

Differentiate between quantitative and qualitative research.

Comprehend the roles and definitions of variables within a research context.

Identify various types of variables and their significance in research design.

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Definitions:

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.

Trading in Securities

The practice of buying and selling stocks, bonds, and other financial instruments, typically for short-term profit.

Audit Committee

A subgroup of a company's board of directors that oversees the financial reporting and disclosure process, working closely with auditors.