Commutation Financial Glossary

What is it? SeeCash Sum at Retirement.

Finance Term Definition Added By: Bailey

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Financial Term variance is Statistical term that quantifies the dispersion of data such as rates or prices around the mean. For example, highly volatile rates are rates that are sometimes high above the mean and sometimes way below the mean. Less volatile rates are dispersed closer to the mean and therefore have smaller variances. Similar to, but not the same as, the average amount by which data deviates from the mean for that data.

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