Which of the Following Statements Is FALSE

question 38

Multiple Choice

Which of the following statements is FALSE?

• A)The standard deviation is the square root of the variance.
• B)Because investors dislike only negative resolutions of uncertainty,alternative measures that focus solely on downside risk have been developed,such as the semi-variance and the expected tail loss.
• C)While the variance and the standard deviation are the most common measures of risk,they do not differentiate between upside and downside risk.
• D)While the variance and the standard deviation both measure the variability of the returns,the variance is easier to interpret because it is in the same units as the returns themselves.

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Definitions:

Foreign-Produced Shoes

Shoes that are manufactured outside of one's home country.

Tariff

A tax imposed on imported goods, usually to protect domestic industries or to generate revenue.

Economic Efficiency

A condition in which resources are allocated in such a way that maximizes the net benefit to society, ensuring that goods and services are produced and distributed in the most cost-effective manner.

Import Quotas

Limits set by a government on the quantity of a certain good that can be imported into a country, used to protect domestic industries.