Which of the Following Statements Is FALSE

question 51

Multiple Choice

Which of the following statements is FALSE?

• A)When stocks are perfectly positively correlated,the set of portfolios is identified graphically by a straight line between them.
• B)An investor seeking high returns and low volatility should only invest in an efficient portfolio.
• C)When the correlation between securities is less than 1,the volatility of the portfolio is reduced due to diversification.
• D)Efficient portfolios can be easily ranked,because investors will choose from among those with the highest expected returns.

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Definitions:

Shell Model

Model of electron distribution in an atom.

Nitrogen Atom

A chemical element with symbol N and atomic number 7, constituting a key part of living organisms' molecules, such as DNA and proteins.

Atomic Number

The number of protons in the nucleus of an atom, which determines the chemical element's identity, and is symbolized as Z.

Uncharged

A state of a particle or object where it has no electrical charge; neutral.