A Distribution's Variance and Standard Deviation

question 120

Multiple Choice

A distribution's variance and standard deviation:

• A) indicates the mean or expected return.
• B) measures the area under the curve.
• C) shows the likelihood that an actual return will be some distance away from the expected value.
• D) All of the above

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Definitions:

Investment Banker

Underwrites new issues of securities for corporations, states, and municipalities.

Securities

Financial instruments that represent ownership positions in corporations (stocks), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by options.