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:

TSX

Toronto Stock Exchange, the largest stock exchange in Canada and the third largest in North America by market capitalization.

Market Value

The existing market price for the acquisition or disposal of an asset or service.

Auction Markets

Marketplaces where buyers and sellers bid on assets, with the highest bid winning the asset.

OTC

Over-the-Counter (OTC) refers to the process of trading securities directly between two parties without the oversight of an exchange.