If You Are Calculating the Variance and Standard Deviation of Returns

question 39

True/False

If you are calculating the variance and standard deviation of returns for a share, the variance will always be larger than the standard deviation.

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Definitions:

Tax Difference

Refers to the disparity between tax rates, obligations, or benefits under different tax systems or scenarios, affecting investment decisions and financial planning.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out to shareholders as dividends. These funds are often reinvested in the business.

Net Capital Spending

The total spending on fixed assets minus the proceeds from the sale of fixed assets over a period.

Canadian GAAP

Generally Accepted Accounting Principles in Canada, a set of accounting standards for financial reporting by Canadian companies.