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:

Cognitive Development

The growth and change in intellectual capabilities such as thinking, reasoning, and understanding over the course of a lifetime.

Preoperational Stage

A developmental phase, according to Jean Piaget, where children aged 2-7 years think symbolically but are not yet able to perform logical operations.

Birthday Parties

Social gatherings to celebrate the anniversary of someone's birth, typically involving activities like eating cake and giving gifts.

Sensorimotor Period

The first of the four stages of cognitive development in Piaget's theory, occurring from birth to age 2, characterized by the development of physical interaction with the environment.