Which of the Following Statements Is False

question 48

Multiple Choice

Which of the following statements is false?

• A) The risk premium of a security is equal to the market risk premium (the amount by which the market's expected return exceeds the risk-free rate), divided by the amount of market risk present in the security's returns measured by its beta with the market.
• B) We refer to the beta of a security with the market portfolio simply as the securities beta.
• C) There is a linear relationship between a stock's beta and its expected return.
• D) A security with a negative beta has a negative correlation with the market, which means that this security tends to perform well when the rest of the market is doing poorly.

---

Definitions:

U.S. Men

This term does not refer to a specific concept and is too broad without additional context; might relate to demographic or sociologic discussions regarding males residing in the United States.

U.S. Women

This term is too broad and not directly related to a specific psychological or physiological concept without more context.

British Men

Refers to male individuals who are from or associated with Britain, a cultural or nationality-based term.

Gay Orientation

A sexual orientation characterized by a romantic or sexual attraction to individuals of the same sex.