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:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, determining profit or loss for that period.

Continuing Operations

Parts of a business that are expected to continue operating into the foreseeable future.

Unusual Item

A nonrecurring or rare event that impacts a company's financial statements, not related to the ordinary activities of the business.

Income Statement

A financial report summarizing the revenues, expenses, and profits over a specified period, usually a fiscal quarter or year.