Which of the Following Statements Is FALSE

question 52

Multiple Choice

Which of the following statements is FALSE?

• A)The Sharpe ratio measures the ratio of volatility-to-reward provided by a portfolio.
• B)Borrowing money to invest in stocks is referred to as buying stocks on margin.
• C)The Sharpe ratio is the number of standard deviations the portfolio's return would have to fall to under-perform the risk-free investment.
• D)The slope of the line through a given portfolio is often referred to as the Sharpe ratio of the portfolio.

---

Definitions:

Heuristic

A simple, efficient rule, whether hard-coded by evolutionary processes or learned, used to make decisions or solve problems.

Morphemes

The smallest grammatical units in a language that carry meaning.

Cognitive Psychology

The study of mental processes such as "attention, language use, memory, perception, problem-solving, creativity, and thinking."

Forensic

Relates to the application of scientific methods and techniques to the investigation of crimes.