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:

Frustration of Contract

A legal doctrine that permits the termination of a contract when an unforeseen event renders contractual obligations impossible, or radically changes the party's principal purpose for entering into the contract.

Complications

Problems or difficulties that arise which make a situation harder to deal with or resolve.

Prudent Businessperson

An individual who exercises care, diligence, and wisdom in making business decisions, similarly to how a reasonable person would act under comparable circumstances.

Specific Performance

A legal remedy requiring a party to perform a specific act, often the completion of a contract, rather than paying damages for non-performance.