Which of the Following Is Not Correct

question 117

Multiple Choice

Which of the following is not correct?

• A)There is a greater reduction in risk by increasing the number of stocks in a portfolio from 1 to 10, than by increasing it from 100 to 120 stocks.
• B)The historical rate of return on stocks has been about 5 percentage points higher than the historical rate of return on bonds.
• C)Stock in an industry that is very sensitive to economic conditions is likely to have a higher average return than stock in an industry that is not so sensitive to economic conditions.
• D)If you had information about a corporation that no one else did, you could earn a very high rate of return.This contradicts the efficient market hypothesis.

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Definitions:

Constitutive Genes

Genes that are constantly active and expressed at a fixed rate in an organism, providing the basic functions necessary for its survival.

Always Expressed

refers to genes or traits that are continually active or manifest in an organism, regardless of environmental conditions.

Cell

The smallest structural and functional unit of an organism, typically microscopic and consisting of cytoplasm and a nucleus enclosed in a membrane.

Activator Protein

A positive regulatory protein that stimulates transcription when bound to DNA. Compare with repressor protein.