Which of the Following Statements Is False

question 81

Multiple Choice

Which of the following statements is false?

• A) The Sharpe ratio of the portfolio tells us how much our expected return will increase for a given increase in volatility.
• B) We should continue to trade securities until the expected return of each security equals its required return.
• C) The required return is the expected return that is necessary to compensate for the risk that an investment will contribute to the portfolio.
• D) If security i's required return exceeds its expected return, then adding more of it will improve the performance of the portfolio.

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Definitions:

Sexual Promiscuity

Engaging in sexual activities with multiple partners without necessarily seeking a committed relationship.

AIDS Crisis

The global epidemic primarily marked by the spread of HIV/AIDS, having significant medical, social, and political implications, particularly highlighted in the 1980s and 1990s.

Unjustifiable Stigma

Negative and unfounded attitudes or beliefs associated with a particular circumstance, quality, or person, leading to exclusion or discrimination.

Obese Person

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