Which of the Following Statements Regarding an Investment's Risk Is

question 8

Multiple Choice

Which of the following statements regarding an investment's risk is not true?

• A) Investors measure risk to determine the degree of uncertainty surrounding their future returns.
• B) Risky stock will have a smaller range of returns and a smaller standard deviation of returns.
• C) Investments with a wide range of returns have more risk.
• D) Standard deviation measures the degree of volatility in the stock's return over time.

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Definitions:

Adverse Impact

A concept in employment law referring to employment practices that appear neutral but have a discriminatory effect on a protected group.

Disparate Treatment

A form of discrimination in which individuals are treated differently based on prohibited factors such as race, age, or gender.

Protected Group

Individuals who are legally protected from discrimination based on characteristics such as race, gender, age, religion, and disability.

Civil Rights Act Of 1991

Legislation in the United States that aimed to strengthen civil rights laws, including providing the right to trial by jury on discrimination claims and introducing the possibility of emotional distress damages and limited punitive damages.