Standard Deviation Calculation
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Questions and Answers

What symbol is used to denote standard deviation?

  • 'σ' (correct)
  • 'λ'
  • 'δ'
  • 'μ'

    • How is standard deviation calculated?

  • It is the square root of variance (correct)
  • It is the average of all data points
  • It is the median of all data points
  • It is the sum of all data points

    • What does a minimal standard deviation indicate?

  • High variability among values
  • High risk
  • High security (correct)
  • High scattering of data points

    • When is the standard deviation considered to be zero?

    <p>When all data points in the distribution are the same</p> Signup and view all the answers

    How is variance calculated?

    <p>It is the summation of the square of differences between each value and their mean</p> Signup and view all the answers

    Why is standard deviation an important statistical tool in finance and investment?

    <p>To interpret the magnitude of risk involved in securities or assets</p> Signup and view all the answers

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