Which of the Following Statements Is FALSE

question 47

Multiple Choice

Which of the following statements is FALSE?

• A)Because diversification improves with the number of stocks held in a portfolio an efficient portfolio should be a large portfolio containing many different stocks.
• B)The beta of a security is the sensitivity of the security's return to the return of the overall market.
• C)An efficient portfolio cannot be diversified further,that is there is no way to reduce the risk of the portfolio without lowering its expected return.
• D)We call a portfolio that contains only unsystematic risk an efficient portfolio.

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Definitions:

Narcolepsy

A lasting sleep disturbance featuring overwhelming sleepiness throughout the day and abrupt instances of sleeping.

Insomnia

A condition marked by challenges in getting to sleep, maintaining sleep, or having restful sleep.

Dopamine

A neurotransmitter involved in movement control, motivation, pleasure, and emotional arousal.

Neurotransmitters

Chemical substances that transmit signals across the synaptic gap between neurons, facilitating communication throughout the nervous system.