Which of the Following Statements Is FALSE

question 38

Multiple Choice

Which of the following statements is FALSE?

• A)The standard deviation is the square root of the variance.
• B)Because investors dislike only negative resolutions of uncertainty,alternative measures that focus solely on downside risk have been developed,such as the semi-variance and the expected tail loss.
• C)While the variance and the standard deviation are the most common measures of risk,they do not differentiate between upside and downside risk.
• D)While the variance and the standard deviation both measure the variability of the returns,the variance is easier to interpret because it is in the same units as the returns themselves.

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Definitions:

Convincing People

The act of persuading or influencing others to believe or accept certain ideas or perspectives.

Unethical Deception

Dishonest actions or statements that violate moral principles and do not adhere to ethical standards.

Lie Detector

A device or procedure designed to detect lies by measuring physiological responses believed to accompany deception, such as heart rate, blood pressure, and galvanic skin response.

Acquiescent Response Set

A tendency for respondents to agree with statements as presented to them, regardless of their content, in the context of questionnaire data.