Which of the Following Statements Is False

question 97

Multiple Choice

Which of the following statements is false?

• A) In exchange for bearing systematic risk, investors want to be compensated by earning a higher return.
• B) A key step to measuring systematic risk is finding a portfolio that contains only unsystematic risk.
• C) When evaluating the risk of an investment, an investor will care about its systematic risk, which cannot be eliminated through diversification.
• D) To measure the systematic risk of a stock, we must determine how much of the variability of its return is due to systematic, market-wide risks versus diversifiable, firm-specific risks.

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Definitions:

3M Model

A theoretical model used in marketing and psychology to explain motivations behind individuals' behaviors, often focusing on memory, motivation, and mindset.

Monitor Approach

A method focusing on continuous observation and analysis of activities or processes, often for the purpose of improvement or intervention.

Consumer Conversations

The discussions or interactions between customers about a product, service, or brand, typically occurring online or in person.

Intrinsic Intent

An action or behavior driven by internal rewards or personal satisfaction rather than external pressures or rewards.