Which of the Following Is the Correct Function for Calculating

question 26

Multiple Choice

Which of the following is the correct function for calculating an unbiased estimate of the variance in the population?

• A) AVERAGE(A1:A15)
• B) STDEV(A1+A2+A3)/3
• C) VAR(A1:A12)
• D) STDEV(A1:A10)

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Definitions:

Zero-coupon Bonds

Bonds that do not pay periodic interest and are sold at a discount from their face value; the return comes from the difference between the purchase price and the face value paid at maturity.

Yield To Maturity

The total return expected on a bond if it is held until the date it matures, including all interest payments and the repayment of the principal.

Annual Interest

The amount of money earned or paid on an investment or loan over a one-year period, expressed as a percentage of the principal.