Which of the Following Statements Is False

question 10

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:

UCC

An all-encompassing series of legal guidelines for managing commercial transactions in the United States is provided by the Uniform Commercial Code.

Confirmation Letter

A document sent to confirm details of an agreement, appointment, or transaction.

Oral Agreement

A contract or agreement made through spoken communication rather than written, which can be legally binding depending on the context.

Customer Uncertainty

The lack of certainty or predictability that consumers feel regarding the value, quality, or benefits of purchasing goods or services.