Which of the Following Statements Is False

question 97

Multiple Choice

Which of the following statements is false?

• A) In exchange for bearing systematic risk, investors want to be compensated by earning a higher return.
• B) A key step to measuring systematic risk is finding a portfolio that contains only unsystematic risk.
• C) When evaluating the risk of an investment, an investor will care about its systematic risk, which cannot be eliminated through diversification.
• D) To measure the systematic risk of a stock, we must determine how much of the variability of its return is due to systematic, market-wide risks versus diversifiable, firm-specific risks.

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Definitions:

Continuum Theories

Models that describe phenomena as existing on a dynamic scale rather than being divided into discrete categories.

Nonadherence

The failure or refusal to comply with prescribed medical treatment plans, potentially leading to adverse health outcomes.

Depression

A common and serious mood disorder that negatively affects how you feel, think, and handle daily activities.

Anxiety

An emotion of feeling anxious or tense due to an uncertain or unpredictable result.