If You Are Calculating the Variance and Standard Deviation of Percentage

question 24

True/False

If you are calculating the variance and standard deviation of percentage returns on a stock, the variance will always be larger than the standard deviation.

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Definitions:

Balance Sheet

A financial statement summarizing a company's assets, liabilities, and shareholders' equity at a particular point in time.

Bonus Method

An accounting technique used to record the transactions related to the admission of a new partner into a partnership by revaluing the existing partners' capital accounts.

Profits and Losses

A financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year.

Limited Liability Partnership

An agreement where a number of partners have their liabilities restricted, such that they are not individually accountable for the business's financial obligations.