Which of the following statements is FALSE?
A) The variance increases with the magnitude of the deviations from the mean.
B) The variance is the expected squared deviation from the mean.
C) Two common measures of the risk of a probability distribution are its variance and standard deviation.
D) If the return is riskless and never deviates from its mean, the variance is equal to one.
D
Explanation: D) If the return is riskless and never deviates from its mean, the variance is equal to zero.
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Generally speaking, which of the following statements is true concerning product attributes?
A) Tangible product attributes are more important than intangible ones. B) Intangible product attributes are more important than tangible ones. C) Both tangible and intangible product attributes are important. D) Neither tangible nor intangible product attributes are important. E) A product has more attributes than tangible and intangible ones.
To attract capital from outside investors, a firm must offer potential investors an expected return that is commensurate with the level of risk that they can bear
Indicate whether this statement is true or false.