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:

Reproductive Success

The passing of genes onto the next generation in a way that they too can pass on those genes.

Genetically Predisposed

The likelihood of developing certain traits or conditions based on one's genetic makeup.

Evolutionary Psychologists

Scientists who study the human mind and behavior from the perspective of evolution, examining how psychological adaptations have evolved to solve problems of survival and reproduction.

Genetically Predisposed

Having an increased likelihood of developing a particular condition or trait based on one's genetic makeup.