Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A) The coefficient of variation is a better measure of risk than the standard deviation if the expected returns of the securities being compared differ significantly.
• B) Managers cannot act in the best interests of their shareholders unless they know their shareholders' average time preference for receiving their money and what risks a typical shareholder is prepared to assume.
• C) Companies should deliberately increase their risk relative to the market only if the actions that increase the risk also increase the expected rate of return on the firm's assets by enough to completely compensate for the higher risk.
• D) If the expected rate of return for a particular investment,as seen by the marginal investor,exceeds its required rate of return,we should soon observe an increase in demand for the investment,and the price will likely increase until a price is established that equates the expected return with the required return.
• E) All of the above statements are correct.

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Definitions:

Indigenous Children

Children belonging to the original inhabitants of a region or country, often with distinct cultural, linguistic, and historical characteristics from dominant populations.

Indian Residential Schools

Institutions that were part of a system in Canada designed to assimilate Indigenous children into Euro-Canadian culture, often involving forced separation from their families and cultures.

Church And Government

The relationship and interaction between religious institutions and governmental authorities, often involving issues of power, influence, and policy.

Crimes

Acts or omissions that are prohibited by law and punishable by the state, ranging from minor offenses to serious felonies.