Which of the Following Statements Is False

question 72

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.

Understand the support systems available for small businesses, including business incubators and development centers.

Recognize the significance of strategic, entrepreneurial, and financial leadership in the growth of a business.

Understand the concept of first-mover advantage and its impact on business success.

Recognize the importance of a business plan and the key components it should contain.

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Definitions:

Negative Terms

Words or phrases used to denote the absence, exclusion, or denial of something within logical or linguistic expressions.

Uncooked

Refers to food that has not been cooked, being in its raw or natural state and not subjected to heat.

Horseless

Pertaining to a vehicle or a mode of transport that does not require horses for power.

Genus

A class or category of things sharing common characteristics; in biology, it refers to a classification ranking above species and below family.