Which of the Following Statements Is False

question 79

Multiple Choice

Which of the following statements is false?

• A) The Sharpe ratio if the portfolio tells us how much our expected return will increase for a given increase in volatility.
• B) We should continue to trade securities until the expected return of each security equals its required return.
• C) The required return is the expected return that is necessary to compensate for the risk that an investment will contribute to the portfolio.
• D) If security i's required return exceeds its expected return, then adding more of it will improve the performance of the portfolio.

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Definitions:

Competitive Strategies

Approaches that businesses adopt to improve their market position and achieve a competitive advantage over rivals.

Performance Determinants

Critical elements or factors that significantly impact how well an individual or system performs.

Interdependencies

Mutual dependence between things, where changes in one element can affect outcomes in another within a system or process.

Leaders

Leaders are individuals who have the ability to influence and direct others towards achieving a common goal or vision.