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:

Adolescence

A developmental stage characterized by the transition from childhood to adulthood, marked by physical, psychological, and social changes.

Autonomy

The capacity to make an informed, uncoerced decision about one's own actions and life direction.

Parent-Adolescent Conflict

The disagreements and misunderstandings between parents and adolescents, often related to differing views, values, or psychological needs.

Late Adolescence

A developmental stage occurring from around 18 to late 20s, characterized by increased independence and exploration of personal identity.