Which option is false concerning return on investment?

The statement that is false concerning return on investment is that the formula to calculate the return is losses plus realized gains minus realized income. This formulation is inaccurate because it does not align with the standard methodology for calculating return on investment.

Return on Investment (ROI) is typically calculated as the net income derived from an investment, which includes any realized gains from the investment while subtracting any realized losses. The correct formula focuses on the net benefits obtained from the investment rather than incorporating losses into the return calculation in the context described.

The expected return being correlated to the risk profile highlights an important financial principle: higher risk generally necessitates the possibility of higher returns, while lower-risk investments may yield lower returns. This relationship is essential for investors to understand when making investment decisions.

Lastly, the concept that it is difficult to quantify risk while calculating return is readily achievable is also accurate. ROI is generally a straightforward calculation that is primarily grounded in realized figures or specific outcomes, whereas risk involves a variety of subjective assessments and statistical measures that may not be as easily quantified.