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:

Transfer Payments

Payments made by governments to individuals or other sectors in the economy, typically without any goods or services being received in return.

Individuals

Refers to single human beings as distinct from groups, typically considered in the context of social or economic policies.

Government Bondholders

Individuals or institutions that hold debt securities issued by the government.

Public Charge

An individual who relies on public resources for support, often used in immigration policy to assess the potential dependency of new entrants.