Which of the Following Statements Is FALSE

question 48

Multiple Choice

Which of the following statements is FALSE?

• A) The standard deviation is one measure of risk.
• B) Risk measures focus only on the negative performance of the asset.
• C) The volatility of the returns of the asset is a measure of risk.
• D) Risk increases as return decreases.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Journal Entry

A record in the accounting ledger that represents a single transaction and its effect on accounts.

Process Costing System

An accounting method used for homogenous products, allocating production costs based on the processes or departments through which the products pass.

Work in Process Inventory

Items that are in the process of being produced but are not yet complete.