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:

Locus of Control

A psychological concept that describes the degree to which individuals believe that they have control over the outcome of events in their lives.

Psychosocial Function

Aspects of psychological and social activities or behaviors that influence an individual's well-being and social integration.

Mentoring Relationship

A dynamic where an experienced individual (mentor) provides guidance, knowledge, and support to a less experienced person (mentee).

Psychosocial Function

Pertains to an individual's psychological development in, and interaction with, a social environment.