Which of the Following Is Not Correct

question 41

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 had,you could earn a very high rate of return.This contradicts the efficient market hypothesis.

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Definitions:

Recommendation Letter

A written endorsement of a person's character and qualifications, typically required for job applications, scholarships, or academic admissions.

Negative Information

Information that is unfavorable, detrimental, or presents challenges to an individual or organization.

Goodwill Message

Communication designed to foster a positive relationship between the sender and the recipient, often expressing thanks or appreciation.

Specific Points

Detailed and precise statements or facts that support an argument or contribute to an understanding of a larger topic.