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:

Cognitive Model

A conceptual framework for understanding how thoughts, feelings, and behaviors interact and influence each other.

Feelings of Inferiority

Emotions stemming from a perceived lack of worth compared to others, potentially affecting self-esteem and motivation.

Unrealistic Expectancies

Beliefs or anticipations that are not based on reality or practicality, often leading to disappointment.

Psychoanalytic Approach

A method of understanding human behavior that emphasizes the importance of unconscious mental processes and early child-development issues.