What Would Be the Expected Value, Variance and Standard Deviation

question 37

Multiple Choice

What would be the expected value, variance and standard deviation of an event that always took the value one as its outcome?

• A)1, 1, 1
• B)1, 0, 1
• C)1, 0, 0
• D)1, 1, 0

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Definitions:

Compounded Quarterly

The process of calculating and adding interest to the principal sum of a deposit or loan every three months.

Outstanding Balance

The total amount of money that is still owed on a loan or a line of credit that has yet to be paid.

Semi-annually Compounded

A reiteration of interest calculation and addition to the principal balance every half year, facilitating growth in investments or debt.

Nominal Rate

The stated interest rate of an investment or loan, not adjusting for inflation or the compounding of interest.