Which of the Following Statements Is False

question 76

Multiple Choice

Which of the following statements is false?

• A) FV =
• B) PV =
• C) FV = C_n × (1 + r)ⁿ
• D) Most investment opportunities have multiple cash flows that occur at different points in time.

---

Definitions:

Unsystematic Risk

The danger linked to a particular business or sector, which can be lessened by spreading investments across different areas.

Well-Diversified Portfolio

A collection of investments across various asset classes and industries intended to reduce risk through the principle of diversification.

Historical Relationship

A reference to the way entities or variables have interacted or correlated with one another in the past.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its riskiness.