Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A)Portfolios with higher volatility have historically rewarded investors with higher average returns.
• B)Investments with higher volatility should have a higher risk premium and therefore higher returns.
• C)Volatility seems to be a reasonable measure of risk when evaluating returns on large portfolios and the returns of individual securities.
• D)Riskier investments must offer investors higher average returns to compensate them for the extra risk they are taking on.

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Definitions:

In-Kind Benefit

Non-monetary compensation or goods and services provided instead of cash, often used in social welfare programs or employee benefits.

Medicaid

A health care program in the United States that provides medical benefits to low-income individuals and families.

Federal Government

The national government of a federation, which typically has specific powers delegated to it by a constitution, distinct from state or provincial governments.

State Governments

The governing bodies of individual states within a country, responsible for local legislation and governance.