Which of the Following Statements Is FALSE

question 76

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:

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Payroll Tax

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Social Insurance Tax

Taxes imposed on employees and employers to fund public insurance programs, such as social security, health care, and unemployment benefits.

Social Security

Social Security is a government system that provides financial assistance to people with an inadequate or no income, primarily the elderly, disabled, and survivors.