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Investment Unit

Standard Deviation

TermDefinition
Stocks A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company
Bonds A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date
Center Middle of the data, usually measured by median or the mean.
Variation How spread out the data is, can be measured by Range, IQR, and Standard Deviation.
Mean Finding an average by adding up all the numbers and dividing by how many numbers you added.
Standard Deviation Square root of the variation
Normal Distribution Curve The top of the curve shows the mean of the data collected. Its standard deviation depicts the bell curve's relative width around the mean.
Diversification Owning a collection of investments such as stocks from different industries and small and large companies, bonds, and money market funds for cash, in order to spread risk and have a safer investment overall.
Histogram visual way to display continuous frequency data using bars.
Created by: yelena585
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