The Variance of a Student T Random Variable with V

question 137

True/False

The variance of a Student t random variable with v degrees of freedom (v > 2)is always greater than 1.

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Definitions:

Perpetuity

A type of annuity that pays an infinite series of cash flows, with no end date.

Duration

Duration measures a bond's sensitivity to interest rate changes, representing the weighted average time until a bond's cash flows are paid to the investor.

Annual Pay

The total monetary compensation an employee receives from their employer in a one-year period, including all forms of salary, bonuses, and other financial benefits.

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Collections of various types of investments held by individuals or institutions to diversify risk and achieve financial goals.