Use the Table for the Question(s)below

question 89

Multiple Choice

Use the table for the question(s) below.
Consider the following covariances between securities:
-Which of the following statements is FALSE?

• A)When stocks are perfectly positively correlated,the set of portfolios is identified graphically by a straight line between them.
• B)An investor seeking high returns and low volatility should only invest in an efficient portfolio.
• C)When the correlation between securities is less than 1,the volatility of the portfolio is reduced due to diversification.
• D)Efficient portfolios can be easily ranked,because investors will choose from among them those with the highest expected returns.

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Definitions:

Reciprocal Determinism

A concept in psychology that posits an individual's behavior is both influenced by and is influential upon their environment and personal factors.

Internal Personal Factors

Characteristics or attributes within an individual, such as beliefs, values, and personality traits, that influence behavior and perception.

Environmental Events

Occurrences within an ecosystem or environment that can affect the organisms living within it, including natural disasters, pollution, and climate change.

Person-situation Controversy

A debate in psychology about the relative influence of personal traits versus situational factors in governing behavior.