Which of the Following Statements Is False

question 89

Multiple Choice

Which of the following statements is false?

• A) Without trading, the portfolio weights will decrease for the stocks in the portfolio whose returns are above the overall portfolio return.
• B) The expected return of a portfolio is simply the weighted average of the expected returns of the investments within the portfolio.
• C) Portfolio weights add up to 1 so that they represent the way we have divided our money between the different individual investments in the portfolio.
• D) A portfolio weight is the fraction of the total investment in the portfolio held in an individual investment in the portfolio.

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Definitions:

Lurking Variable

A variable that is not directly measured or controlled in a study but can affect the variables of interest, potentially leading to misleading conclusions.

Block Design

An experimental design in which the experimental subjects are divided into blocks before being randomly assigned to treatments, to reduce the effects of variability among them.

Shark Fin Extract

A substance obtained from the fins of sharks, often used in traditional medicine or as a culinary delicacy.

Type Of Glue

The categorization of adhesives based on their chemical composition, bonding mechanisms, or intended use cases.