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In Order to Use the Formula to Calculate Standard Deviation

question 26

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In order to use the formula to calculate standard deviation, one must first calculate the mean of distribution.


Definitions:

Maturity

The finite time at which a financial instrument, such as a bond or loan, reaches its expiration date and the principal is to be paid back.

Cost of Equity

The expected return on investment required by shareholders, representing the compensation for investing in a company's equity and assuming the associated risk.

Market Return

The total return on an investment or portfolio over a given period, including capital gains and dividends, relative to the overall market.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its sensitivity to market movements.

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