Which of the Following Statements Is False

question 75

Multiple Choice

Which of the following statements is false?

• A) The expected return of a portfolio should correspond to the portfolio's beta.
• B) Graphically the line through the risk-free investment and the market portfolio is called the capital market line (CML).
• C) The beta of a portfolio is the weighted average beta of the securities in the portfolio.
• D) By holding a negative beta security, an investor can reduce the overall market risk of her portfolio.

---

Definitions:

Comparative Negligence

Comparative Negligence is a legal principle where the fault and damages are divided among the parties involved based on the degree of each party's negligence.

Charcoal Fire

The heat and flames produced by burning charcoal, commonly used for cooking and heating purposes.

Pure Comparative

A legal doctrine that allows plaintiffs to recover damages even if they are 99% at fault in a negligence case, with recovery reduced by their degree of fault.

Abnormally Dangerous

Activities or conditions that inherently carry a significant risk of substantial harm, even when reasonable care is taken.