The Standard Deviation Should Be Applied to Values Rather Than

question 60

True/False

The standard deviation should be applied to values rather than percentage movements when comparing volatility among currencies.

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Definitions:

Normally Distributed

A statistical term describing data that follows a bell curve pattern, where most occurrences take place around the mean value.

Confidence Interval

A statistical range, with a given probability, that is likely to contain the true value of an unknown parameter.

Small-Company Stocks

Shares of ownership in small-cap companies, often carrying higher risk but potentially offering higher returns compared to shares of larger corporations.

Capital Gains Yield

The change in price of a security over time, expressed as a percentage.