One Common Reason for Reporting Standard Deviations Rather Than Variances

question 65

Multiple Choice

One common reason for reporting standard deviations rather than variances is that standard deviations:

• A) are lower.
• B) are stated in understandable units.
• C) account properly for negative returns.
• D)take probability estimates into consideration.

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Definitions:

Changes Hands

An expression referring to the act of transferring ownership of something from one person or group to another.

Overall Prices

Overall prices refer to the general level of prices for goods and services in the economy, often assessed through indicators like the Consumer Price Index (CPI).

Price Level

A measure of the average prices of goods and services in an economy, indicating the cost of living or inflation rate.

Falling Prices

A situation in an economy where the prices of goods and services decrease over time.