Which of the Following Statements Is FALSE

question 40

Multiple Choice

Which of the following statements is FALSE?

• A)The variance increases with the magnitude of the deviations from the mean.
• B)The variance is the expected squared deviation from the mean.
• C)Two common measures of the risk of a probability distribution are its variance and standard deviation.
• D)If the return is riskless and never deviates from its mean,the variance is equal to one.

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Definitions:

Law of Demand

The economic principle that, all else being equal, there is an inverse relationship between the price of a good and the quantity demanded.

Other-Things-Equal Assumption

The assumption that factors other than those being considered are held constant. Also known as the ceteris paribus assumption.

Supply

The total amount of a specific good or service that is available to consumers at current prices.

Excise Tax

A tax imposed on specific goods, services, or activities, such as tobacco, alcohol, and fuel, usually intended to discourage their use or generate revenue.