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:

Uncut Forest

An area of forest that has not been subjected to logging, retaining its natural characteristics and biodiversity.

Regenerated Forest

Forests that have re-grown after a major disturbance, such as logging, fires, or clear-cutting, often with the intervention of human or natural processes.

Wilderness

A natural environment on Earth that has not been significantly modified by human activity, offering critical habitat for wildlife and opportunities for human recreation.

Clear-cutting Methods

Forestry practices involving the complete removal of all trees from a particular area, often used for timber extraction.