Which Statement Is NOT True

question 248

Multiple Choice

Which statement is NOT true?

• A) Portfolio managers should diversify investments.
• B) The promise of higher returns is accompanied by higher risk.
• C) A single investor can consistently beat the market over the long term.
• D) Active stock markets are an important part of the economy.

---

Definitions:

Standard Deviation

A measure of the dispersion or variability in a set of values, often used to quantify the risk of investment returns.

Volatility Level

A statistical measure of the dispersion of returns for a given security or market index, often associated with the degree of risk.

Bell Curve

A graphical depiction of a normal probability distribution, characterized by a symmetrical bell-shaped curve.

Risk Premium

The extra return expected by investors for holding a risky asset over a risk-free one, compensating for the higher risk.