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:

Replacement Planning

The process of identifying and preparing suitable employees to replace key positions within an organization in case of employee turnover.

Mentoring

A personal developmental relationship in which a more experienced or knowledgeable person helps to guide a less experienced or knowledgeable person.

Succession Management Process

A strategy for identifying and developing new leaders who can replace old leaders when they leave, retire, or die, ensuring continuity in leadership and operations.

Succession Planning

A strategic process of identifying and developing new leaders who can replace old leaders when they leave, retire or die.