Which of the Following Statements Is False

question 3

Multiple Choice

Which of the following statements is false?

• A) The expected return is the return that actually occurs over a particular time period.
• B) If you hold the stock beyond the date of the first dividend, then to compute your return you must specify how you invest any dividends you receive in the interim.
• C) The average annual return of an investment during some historical period is simply the average of the realized returns for each year.
• D) The realized return is the total return we earn from dividends and capital gains, expressed as a percentage of the initial stock price.

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Definitions:

Variances

Measures of the dispersion or spread of a set of data points around their mean value.

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers together and then dividing by the count of the numbers.

Standard Deviation

A measure determining the extent of variation or scatter among a batch of numbers.

Symmetric

A shape or distribution that is even and mirrored around a central point or axis.