The Standard Deviation of a Standard Normal Distribution

question 63

Multiple Choice

The standard deviation of a standard normal distribution

• A) is always equal to zero.
• B) is always equal to one.
• C) can be any positive value.
• D) can be any value.

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Definitions:

Zero Variance

A statistical condition in which all data points in a set are identical, offering no variability among them.

Expected Returns

The expected yield from an investment, considering the likelihood of different results.

Positive Variance

The difference between actual performance and expected performance where the actual outcome is more favorable than what was anticipated.

Weights

In finance, it refers to the proportion of each component's value in a portfolio or in a weighted average calculation.