If a Payout Is Certain to Occur,then the Variance of That

question 117

Multiple Choice

If a payout is certain to occur,then the variance of that payout equals

• A) zero.
• B) one.
• C) the expected value.
• D) the expected value squared.

---

Definitions:

Federal Unemployment Tax

A tax paid by employers to fund the government's unemployment benefits.

Federal Unemployment Tax Rate

The rate at which employers are taxed by the federal government to fund the unemployment benefits and administrative costs of the federal unemployment insurance program.

Current Liabilities

Short-term financial obligations that are due within one year or within the company's operating cycle, whichever is longer.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and equity at a specific point in time, reflecting its financial standing.