Which of the Following Statements Is FALSE

question 127

Multiple Choice

Which of the following statements is FALSE?

• A)The Sharpe ratio of the portfolio tells us how much our expected return will increase for a given increase in volatility.
• B)We should continue to trade securities until the expected return of each security equals its required return.
• C)The required return is the expected return that is necessary to compensate for the risk that an investment will contribute to the portfolio.
• D)If security i's required return exceeds its expected return,then adding more of it will improve the performance of the portfolio.

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Definitions:

Structure

The configuration and interrelations among the components or aspects of a complicated entity.

Major Organic Product

Refers to the primary product of a chemical reaction, typically the one formed in the greatest amount.

Structure

The arrangement or organization of something, especially referring to physical substances or chemical compounds.

Major Organic Product

The principal outcome of a reaction within an organic framework, distinguished by its predominance in yield or concentration.