Which of the Following Statements Is False

question 21

Multiple Choice

Which of the following statements is false?

• A) The expected return of a portfolio should correspond to the portfolio's beta.
• B) Graphically the line through the risk-free investment and the market portfolio is called the capital market line (CML).
• C) The beta of a portfolio is the weighted average beta of the securities in the portfolio.
• D) By holding a negative beta security, an investor can reduce the overall market risk of his or her portfolio.

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Definitions:

Special Journals

Customized accounting journals used to categorize and record specific types of financial transactions efficiently.

Crossfooting

A method used in accounting to check the arithmetic accuracy of figures by adding columns of numbers both vertically and horizontally and comparing the totals.

Equality

In accounting, the concept that the sum of debits must equal the sum of credits in a transaction.

Subsidiary Ledger

A detailed ledger that contains all the transaction details of a specific account, which is summarized in the general ledger.