The calculation of the standard deviation of a currency is based on:
A)a time series of the values of that currency.
B)the changes in the exchange rate of that currency annually of a specified number of years.
C)the average exchange rates of the currency over a specified period.
D)the exchange rate of the currency at a specific point in time.

Question

Quizplus · Accepted Answer

The standard deviation of a currency is calculated based on a time series of the values of that currency. This means that the fluctuations in the value of the currency over a specific period of time are taken into account to determine its standard deviation. The time series can be daily, weekly, monthly, or annually, depending on the purpose for which the standard deviation is being calculated.

The Calculation of the Standard Deviation of a Currency Is