Variance, finite

• Refers to a statistic which is limiting or converges. This means that various samples of statistically acceptable sizes and samples across time exhibit relatively stable variances or standard deviations. This is an important assumption for many statistical analyses, particularly VAR (Value at Risk) methodologies. However, it may not apply during turbulent times. It must be used with caution.

 Embedded terms in definition
 Standard deviation
Value at risk
 Related Terms
 Variance, infinite

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