Which of the Below Statements Is TRUE

question 52

Multiple Choice

Which of the below statements is TRUE?

• A) A particularly useful way to quantify the uncertainty about the portfolio return is to specify the probability associated with each of the possible future returns.
• B) The expected return is simply the mean or average of possible outcomes without regard to each outcome's probability or weight.
• C) One measure of risk is the extent to which possible future portfolio values are likely to diverge from the last value.
• D) If risk is defined as the chance of achieving returns lower than expected, it would seem logical to measure risk by the dispersion of the possible returns above the expected value.

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Definitions:

Complete Counterbalancing

A method in experimental design where all possible orders of presenting stimuli are used across participants to control for order effects.

Repeated Measures

A research design where the same participants are observed multiple times under different conditions.

Posttest-pretest

An analysis framework where the performance or outcomes are examined after the intervention first, followed by comparison to the initial pre-intervention state.

Repeated Measures

A study design in which the same subjects are tested under each condition more than once, allowing for the control of individual differences.