Which of the Following Statements Is FALSE

question 94

Multiple Choice

Which of the following statements is FALSE?

• A) Efficient portfolios can be easily ranked, because investors will choose from among them those with the highest expected returns.
• B) When shares are perfectly positively correlated, the set of portfolios is identified graphically by a straight line between them.
• C) An investor seeking high returns and low volatility should only invest in an efficient portfolio.
• D) When the correlation between securities is less than 1, the volatility of the portfolio is reduced due to diversification.

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Definitions:

Muscular Strength

Refers to the maximum amount of force a muscle or group of muscles can exert in a single effort.

Muscular Endurance

The ability of a muscle, or group of muscles, to perform repetitive contractions over a period of time without becoming fatigued.

Physical Flexibility

The ability of joints and muscles to move through their full range of motion, important for overall mobility and health.

Muscle Strength

The ability of a muscle or group of muscles to exert force against resistance.