Which of the Following Statements Is False

question 91

Multiple Choice

Which of the following statements is false?

• A) We say a portfolio is an efficient portfolio whenever it is possible to find another portfolio that is better in terms of both expected return and volatility.
• B) We can rule out inefficient portfolios because they represent inferior investment choices.
• C) The volatility of the portfolio will differ, depending on the correlation between the securities in the portfolio.
• D) Correlation has no effect on the expected return on a portfolio.

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Definitions:

Storm Surge

A storm surge is an abnormal rise of water generated by a storm, over and above the predicted astronomical tides.

Hurricane Effects

The impacts caused by hurricanes, including high winds, heavy rainfall, storm surges, flooding, and coastal erosion.

Wave-Cut Platform

A gently sloping surface or bench produced by wave erosion.

Bedrock

The solid rock layer beneath soil, loose rocks, or other surface materials.