Which of the Following Statements Is TRUE

question 79

Multiple Choice

Which of the following statements is TRUE?

• A)Portfolios with lower volatility have historically rewarded investors with higher average returns.
• B)Individual stocks with higher volatility have consistently rewarded investors with higher average returns.
• C)Volatility seems to be a reasonable measure of risk when evaluating returns on large portfolios.
• D)Volatility seems to be a reasonable measure of risk when evaluating returns on individual stocks.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Dissociative Identity

A disorder characterized by the presence of two or more distinct personality states or identities within a single individual.

Major Depression

A mental disorder characterized by at least two weeks of persistent sadness, loss of interest in activities, and other depressive symptoms.

Disturbances

Events or factors that disrupt the normal functioning or state of a system, environment, or individual.