Which of the Following Statements Is FALSE

question 41

Multiple Choice

Which of the following statements is FALSE?

• A) Volatility seems to be a reasonable measure of risk when evaluating returns on large portfolios and the returns of individual securities.
• B) Investments with higher volatility have rewarded investors with higher average returns.
• C) Riskier investments must offer investors higher average returns to compensate them for the extra risk they are taking on.
• D) Investments with higher volatility should have a higher risk premium and, therefore, higher returns.

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Definitions:

Maculae

Specialized structures in the vestibular system of the inner ear involved in detecting linear acceleration and gravitational forces.

Crista Ampullaris

Elevation on the inner surface of the ampulla of each semicircular duct for dynamic or kinetic equilibrium.

Semicircular Canals

Structures in the inner ear that are key to maintaining balance by detecting head movements.

Cupulae

Gelatinous, dome-shaped structures found in the semicircular canals of the inner ear, crucial for detecting rotational movements of the head.