Which of the Following Statements Is False

question 54

Multiple Choice

Which of the following statements is false?

• A) Expected return should rise proportionately with volatility.
• B) Investors would not choose to hold a portfolio that is more volatile unless they expected to earn a higher return.
• C) Smaller stocks have lower volatility than larger stocks.
• D) The largest stocks are typically more volatile than a portfolio of large stocks.

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Definitions:

Continuous Random Variables

Random variables that can assume an infinite number of outcomes in a continuous range.

Continuous Random Variable

A variable that can assume an infinite number of values within a specific range and is used in probability and statistics.

Homes Sold

The number of residential properties that have been sold over a specific period of time.

Discrete Random Variable

A variable that can only take on a finite or countably infinite set of distinct values, often representing counts or categories.