Which of the Following Statements Is FALSE

question 96

Multiple Choice

Which of the following statements is FALSE?

• A)In exchange for bearing systematic risk,investors want to be compensated by earning a higher return.
• B)A key step to measuring systematic risk is finding a portfolio that contains only unsystematic risk.
• C)When evaluating the risk of an investment,an investor will care about its systematic risk,which cannot be eliminated through diversification.
• D)To measure the systematic risk of a stock,we must determine how much of the variability of its return is due to systematic,market-wide risks versus diversifiable,firm-specific risks.

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Definitions:

Legally Accountable

Being responsible or answerable in law; legally obligated to face the consequences of one's actions or decisions.

Concentration

Term applied to designated groups whose numbers in a particular occupation or level are high relative to their numbers in the labour market

Protected Class

Groups of people legally protected from discrimination and harassment, based on characteristics such as age, race, gender, religion, and disability.

Labour Market

The supply and demand for labor, where employees provide the supply and employers create the demand.