Which of the following statements is FALSE?

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.


Answer: B) In finance, the standard deviation of a return is also referred to as its volatility.


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