Which of the Following Statements Is False

question 35

Multiple Choice

Which of the following statements is false?

• A)diversification cannot eliminate risk that is inherent in the macroeconomy or market risk.
• B)the expected rate of return on a portfolio does not depend on the correlation between the return on each stock.
• C)although gold is a risky investment by itself, including gold in a stock portfolio may reduce total risk of the portfolio.
• D)all of the above statements are correct.

---

Definitions:

Autonomic Nervous System

The section of the nervous system responsible for managing automatic functions of the body like cardiac rhythm, respiratory processes, and digestive activities.

Physiological Arousal

A physical state of heightened alertness and increased activity in the autonomic nervous system, often as a response to a stimulus.

Different Emotions

A variety of emotional experiences and responses that humans feel, including happiness, sadness, anger, and fear.

Basic Emotions

Fundamental emotions that are universally recognized and experienced by humans, such as happiness, sadness, fear, anger, surprise, and disgust.