Which of the Following Statements Is False

question 55

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.

---

Definitions:

Assets

Economic resources owned or controlled by a business, expected to produce future benefits.

Profitability

A financial metric used to assess the ability of a business to generate earnings compared to its expenses over a specific period.

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Liabilities

Financial obligations or debts that a company owes to others.