Which of the Following Is Correct

question 108

Multiple Choice

Which of the following is correct?

• A) Total risk is measured by the standard deviation.
• B) There is a positive relationship between risk and return.
• C) If you observe a high variability in a stock's returns you can infer that the stock is very risky.
• D) All of the statements are correct.

---

Definitions:

Income Tax Expense

This represents the amount of money a company expects to pay in income taxes based on its taxable income for a given period.

Straight-Line Depreciation

A technique for laying out the expense of a solid asset over its viable life in consistent annual segments.

Initial Investments

The upfront expenses incurred when starting a new project, business, or investment.

Income Taxes

Taxes levied by governments on the income generated by businesses or individuals within their jurisdiction.