Which of the Following Statements Is FALSE

question 39

Multiple Choice

Which of the following statements is FALSE?

• A) Smaller company shares have lower volatility than larger stocks.
• B) Investors would not choose to hold a portfolio that is more volatile unless they expected to earn a higher return.
• C) The shares of the largest companies are typically more volatile than a portfolio of large cap shares.
• D) Expected return should rise proportionately with volatility.

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Definitions:

Euros

The official currency of 19 out of the 27 European Union countries, known as the Eurozone.

Purchase

The act of obtaining goods or services, often in exchange for money, to be used in the operation or activities of a business.

Inventory Costing

The method used to value inventory, including approaches like Last In, First Out (LIFO), First In, First Out (FIFO), and Weighted Average Cost.

Accounting Principles

The rules and guidelines that companies must follow when reporting financial data.