Which One of the Following Statements Is FALSE

question 48

Multiple Choice

Which one of the following statements is FALSE?

• A)When we compute the return of a security based on the average payoff we expect to receive,we call it the expected return.
• B)The notion that investors prefer to have a safe income rather than a risky one of the same average amount is call risk aversion.
• C)Because investors are risk averse,the risk-free interest rate is not the right rate to use when converting risky cash flows across time.
• D)The more risk averse investors are,the higher the current price of a risky asset will be compared to a risk-free bond.

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Definitions:

Jewish People

An ethnoreligious group originating from the Israelites of the ancient Near East, with a rich cultural and religious tradition found in Judaism.

Non-Jewish Communities

Groups of people not identifying with the Jewish religion or culture, which can include any other religious or ethnic community.

Sedition Act

Legislation enacted by governments to penalize speech, writing, or actions considered disloyal or threatening to the state.

NAACP

The National Association for the Advancement of Colored People, an organization founded in 1909 to fight for civil rights and eliminate race-based discrimination.