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:

Major Organic Product

Refers to the main product obtained in the highest yield from an organic reaction, distinguished from any side products or minor products.

Electrophilic Chlorination

A chemical reaction where a chlorine atom, acting as an electrophile, is added to another molecule, often involving aromatic compounds or alkanes.

Aromatic Compounds

Organic molecules that contain one or more benzene rings in their structure, characterized by their stable ring system and delocalized pi electrons.

H2O

The chemical formula for water, a compound consisting of two hydrogen atoms bonded to one oxygen atom.