Which of the Following Statements Is False

question 36

Multiple Choice

Which of the following statements is false?

• A) When an investment is risky, there are different returns it may earn.
• B) In finance, the variance of a return is also referred to as its volatility.
• C) The expected or mean return is calculated as a weighted average of the possible returns, where the weights correspond to the probabilities.
• D) The variance is a measure of how "spread out" the distribution of the return is.

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Definitions:

Ledger

A book or database in which financial transactions are recorded systematically.

Source Documents

Original records that provide evidence that a transaction has occurred, such as receipts, invoices, checks, or bank statements.

Unearned Revenue

Money received by a business for goods or services yet to be provided; it is recorded as a liability until the goods or services are delivered.

Balance Sheet

A financial document showing what a company owns, owes, and the equity of its shareholders at a fixed point in time.