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:

Aspire

To have a strong desire, longing, or aim to achieve something, often something difficult or ambitious.

Good Work

Work that is not only high in quality but also ethically responsible and socially beneficial.

Reversibility

The property of a process or action to be reversed, returning to its original state or condition without significant changes or consequences.

Ethical Screen

A set of criteria or principles used to make decisions that align with one's ethical or moral standards.