Which of the Following Statements Is False

question 105

Multiple Choice

Which of the following statements is false?

• A) Diversification cannot eliminate risk that is inherent in the macro economy or market risk.
• B) The expected rate of return on a portfolio depends on the correlation between the return on each stock.
• C) Although gold is a risky investment by itself, including gold in a stock portfolio may reduce total risk of the portfolio.
• D) Using the concept of correlation in a portfolio can reduce risk.

---

Definitions:

Pop Psychology

A term for the concepts and theories about human mental life and behavior that are purportedly based on psychology and that find popularity among the general public.

Assumptions

Beliefs or statements taken for granted without proof, often serving as the foundation for further reasoning or arguments.

Current Research

Refers to the latest studies and findings in the field of psychology, focusing on advancing our understanding of the mind and behavior.

Psychology View

A perspective or approach within psychology that emphasizes understanding mental processes, behaviors, and issues from a particular theoretical standpoint.