The Formula for the Standard Deviation of Cash Held by the Centralized

question 19

Multiple Choice

The formula for the standard deviation of cash held by the centralized depository for N affiliates is $\sqrt { ( \text { Std. Dev. Affiliate } 1 ) ^ { 2 } + ( \text { Std. Dev. Affiliate } 2 ) ^ { 2 } + \cdots + ( \text { Std. Dev. Affiliate } N ) ^ { 2 } + }$

• A)The formula assumes that inter-affiliate cash flows have a correlation coefficient of ?1.
• B)The formula assumes that inter-affiliate cash flows have a correlation coefficient of +1.
• C)The formula assumes that inter-affiliate cash flows have a correlation coefficient of 0.
• D)none of the options

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Definitions:

Representational Gesture

Movements or signals used to convey or represent specific thoughts or ideas without using words.

Conventional Social Gesture

A socially accepted movement or action, like a handshake or nod, that communicates a message or intention without words.

Symbolic Gesture

A physical movement or action that holds a specific meaning or message within a cultural or social context.

Speech Sounds

The auditory signals that are produced by the articulatory movements of the mouth and throat, which are fundamental elements of language and communication.