Which of the Following Statements Is FALSE

question 91

Multiple Choice

Which of the following statements is FALSE?

• A)The risk premium of a security is equal to the market risk premium (the amount by which the market's expected return exceeds the risk-free rate),divided by the amount of market risk present in the security's returns measured by its beta with the market.
• B)We refer to the beta of a security with the market portfolio simply as the security's beta.
• C)There is a linear relationship between a stock's beta and its expected return.
• D)A security with a negative beta has a negative correlation with the market,which means that this security tends to perform well when the rest of the market is doing poorly.

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Definitions:

Relationship Management

The practice of maintaining and improving relationships between an organization and its clients, customers, or stakeholders.

Emotional Intelligence

The capability to recognize, understand, manage, and reason with emotions in oneself and others.

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