Standard deviation of tighter probability distribution is____________?
Correct answer: D. Smaller
- A. Long-termed
- B. Short-termed
- C. Riskier
- D. Smaller
Explanation
A tighter probability distribution has observations clustered more closely around the mean, so its standard deviation is smaller. A larger standard deviation would indicate greater dispersion and uncertainty.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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